Calculate the correct cost of the inventory

Reference no: EM132083204

Question: The Village Hat Shop Limited counted the entire inventory in its store on August 31 and arrived at a total inventory cost of $66,880. The count included $7,809 of inventory held on consignment for a local designer; $577 of inventory that was being held for customers who were deciding if they actually wanted to purchase the merchandise; and $1,357 of inventory that had been sold to customers but was being held for alterations. There were two shipments of inventory received on September 1. The first shipment cost $5,881. It had been shipped on August 29, terms FOB destination. The second shipment cost $4,027, plus freight charges of $635. It had been shipped on August 28, terms FOB shipping point. Neither of these shipments was included in the August 31 count.

Calculate the correct cost of the inventory on August 31.

Reference no: EM132083204

Questions Cloud

Determine the total compensation cost : Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2016, options were granted for 64 million $1 par common.

How does web 2 change security for the internet : Web 2.0 reexamines the Internet from the client, the modeler, and the provider's points of view, each of which permits new and innovative occupations .

What minimum price should violet charge : Violet has received a special order for 110 units of its product. The product normally sells for $2,400 and has the following manufacturing costs.

Describe an it or similar business project you have done : Bases on Balanced Scorecard describe an IT or similar business project you have done or are currently doing.

Calculate the correct cost of the inventory : The Village Hat Shop Limited counted the entire inventory in its store on August 31 and arrived at a total inventory cost of $66,880.

Explain what is meant by the term diversity management : Explain what is meant by the term 'diversity management'. Where would you be likely to find a diversity policy within the organisation

Explain each line of the journal entry : Vouchers in the amount of $325,000 were authorized for payment. This was $8,000 less than the amount originally encumbered for these purchases.

Describe the current impact and influence in the economy : Does it introduce not just positive things but are their secondary potential aspects, which may destabilize current technologies.

Prepare a cvp income statement : Volmar Company had sales in 2016 of $1, 250,000 on 50,000 units. Variable costs totalled $600,000, and fixed costs totalled $500,000.

User Account

All Pages