Compute the correct final balance of inventory

Assignment Help Financial Accounting
Reference no: EM132846312

Question - On December 31, Allen Company had an ending inventory of $73,800 based primarily on a physical count at its warehouse. In computing the final balance of Inventory, the following information was available:

(a) Inventory items with a cost of $2,660 were included in ending inventory. These goods were on consignment to Jones Company. They had not yet been sold.

(b) Inventory items with a cost of $2,000 were included in ending inventory. These goods were in transit from Gray Company to Allen Company and were purchased FOB shipping point.

(c) Inventory items with a cost of $3,560 were excluded from ending inventory. These goods were in transit from Allen Company to King Company and were sold FOB destination.

Required - Using the information given above, compute the correct final balance of Inventory.

Reference no: EM132846312

Questions Cloud

Analyze cultural competence elements : Choose the challenge or situation that this client might face (e.g., alcoholism, domestic violence, homelessness, poverty, terminal illness, etc.)
Describe the fictional organization : Describe this fictional organization (e.g., what it aims to do, and the clients you work with, etc.) and evaluate the impact that issues may have on delivery.
What are the total equivalent units for direct materials : Direct materials are added at the beginning of the process. What are the total equivalent units for direct materials
Why is important to understand the flow of information : Why is important to understand the flow of information into and across Electronic Health Records (EHRs)? How will this influence work as a health care manager?
Compute the correct final balance of inventory : Inventory items with a cost of $2,660 were included in ending inventory. Compute the correct final balance of Inventory
Identify the problems with the current policy : Identify the problems with the current policy. Indicate any challenges with the current policy. Discuss how the new and improved policy will be implemented.
Determine each partner share given a first-year net income : Ramer and Knox began a partnership by investing $60,000 and $90,000, respectively. Determine each partner share given a first-year net income
Contrast to other counterterrorism tactics : How does this tactic compare and contrast to other counterterrorism tactics? How does this counterterrorism tactic address future threats of global terrorism?
What amount should be shown in Dan balance sheet : On January 1, 2010, Dan Company purchased a new machine for P2,000,000. What amount should be shown in Dan balance sheet

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the amount of sales revenue reported

The following selected account balances were taken from Buckeye Company's general ledger at January 1, 2005 and December 31, 2005: January 1, 2005 December 31, 2005 Accounts receivable 50,000 71,000 Inventory 39,000 28,000. Calculate the amount of sa..

  Next processing department during the period

A total of 1,500 units were completed and transferred to the next processing department during the period

  Question wake construction installs and manufactures

question wake construction installs and manufactures standard and custom-made cabinetry for residential homes. last

  Direct materials price and quantity variances

Summarize the variances that you computed in above by showing the net overall favorable or unfavorable variance for October.

  Calculate the gross profit for the first year of trading

Calculate the gross profit for the first year of trading. Green started trading on I January 2018 he has the following figures for the first year of trading

  What was the percentage change value

The Ecuadorian sucre (SE) suffered from hyper-inflation in the 1990s, falling from S5,000 to the USD to S25,000. What was the percentage change value?

  How is boston chicken performing

How is the company reporting on its performance and risks? What are the key assumptions behind these policies? Do you think that its accounting policies reflect

  What is her margin of safety in units

Emma Jones contracted with the publisher of a GMAT test preparation manual package to sell the review materials at college fairs. She can purchase the book from the wholesaler at $83 per package, with the privilege of returning all unsold packages an..

  Statement of cash flows for the year ended

The following is selected information from Ventura Company for the fiscal years ended December 31, 2014: Ventura Company had net income of $1,225,000. Depreciation was $500,000, purchases of plant assets were $1,250,000, and disposals of plant assets..

  What is the number of meals required to break-even

Break-Even Analysis - Big Gerson's Sizzlin' Grill and Bar - What is the number of meals (unit sales volume) required to break-even

  What amount should eber report as amortization of the lease

The equipment reverts to the lessor at the end of the lease. What amount should Eber report as amortization of the lease at December 31, year 1?

  What amount of interest income should jason record

How would Sun record the initial bond investment to be held-to-maturity? What amount of interest income should Jason record for the six-month period ended December 31, 2015?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd