User Account

All Pages

Determine the correct inventory amount on december 31

Assignment Help Cost Accounting
Reference no: EM13531810

Worthmore Bank and Trust is considering giving Madsen Company a loan. Before doing so, it decides that further discussions with Madsen"s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $275,000. Discussions with the accountant reveal the following.

1. Madsen sold goods costing $55,000 to Allen Company FOB shipping point on December 28. The goods are not expected to reach Allen until January 12. The goods were not included in the physical inventory because they were not in the warehouse.

2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Madsen FOB destination on December 27 and were still in transit at year-end.

3. Madsen received goods costing $25,000 on January 2. The goods were shipped FOB shipping point on December 26 by Lynch Co. The goods were not included in the physical count.

4. Madsen sold goods costing $51,000 to Finet of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Madsen"s physical inventory.

5. Madsen received goods costing $42,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $275,000.

Instructions

Determine the correct inventory amount on December 31.

Reference no: EM13531810

Questions Cloud

Explain what mass of sodium sulfate is required : Describe in detail how you would prepare 300 mL of aqueous 0.200M sodium sulfate. What mass of sodium sulfate is needed
Obtain the average angular acceleration of the hard disk : During normal operation, a computer's hard disk spins at 7200 rpm. what is the average angular acceleration of the hard disk
Explain measure to make accurate calculations : What will you need to account for in you calculation. What things would you need to measure to make accurate calculations. What information would you need to look up.
What is the period of the telescopes orbit : The Hubble Space Telescope orbits Earth 601 km above Earth's surface. What is the period of the telescope's orbit
Determine the correct inventory amount on december 31 : Worthmore Bank and Trust is considering giving Madsen Company a loan. Before doing so, it decides that further discussions with Madsens accountant may be desirable.
Determine the properties of the final image of the system : A diverging thin lens and a concave mirror have focal lengths of equal magnitude. Determine the properties of the final image of the system affter two refractions
Explain the pcl5 decomposes until equilibrium is established : A sealed tube contains 1.66 atm PCl5 at 500 K. The PCl5 decomposes until equilibrium is established. The equilibrium pressure in the tube is 2.28 atm. Calculate Kp for this equilibrium.
Determine how fast does an insect move : An apparatus, shown in the the figure below, is designed to study insects at an acceleration of magnitude 958 m/s (= 97.8g). How fast does an insect move when it experiences a radial acceleration of 958 m/s2
Determine the inventory turnover and days in inventory : Determine the inventory turnover and days in inventory for 2011 and 2012. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the two years.

Reviews

Write a Review

Cost Accounting Questions & Answers

  What will annual dollar cash flows be

Given the currency scenario described above, what is the expected value of annual after-tax dollar cash flows assuming no repatriation of profits to the United States?

  Compute the cost per processed check for september at roc

Compute the cost per processed check for September at ROC - Big City Bank processes the checks its customers write at Riverdale Operations Center (ROC). ROC processed 2,800,000 checks in September.

  Questionon december 31 2012 dow steel corporation had

questionon december 31 2012 dow steel corporation had 730000 shares of common stock and 43000 shares of 9 noncumulative

  Not-for-profit hospital financial statement analysis

Discuss the relative importance of different classifications of assets to total assets. What additional information would you expect to find in the notes to the financial statements about major classification of assets?

  Mary has a three-stock portfolio and is interested in

mary has a three-stock portfolio and is interested in calculating its overall return next year. she has 25000 invested

  Calculate the cost of finished goods inventory

Ron Williams recently took over as the controller of Johnson Brothers Manufacturing. Last month, the previous controller left the company with little notice and left the accounting records in disarray.

  What are the journal entries for dec 31 portion

The Mchenry company purchased a truck for 54,000 on Jan 4, 2010. Paid $275.00 in Feb for oil change Dec 31 record the depreciation on the truck for the fisical year. The estimated useful life of the truck is 8 years witha residual value of $12,000..

  New orleans inc is a multidivisional company the present

new orleans inc. is a multidivisional company. the present roi for new orleans inc. as a whole is 12. new orleans inc.

  Jacob gives stock

Jacob gives stock (basis of $900,000 and fair market value of $2.2 million) to Mandy. As a result of the transfer in 2013, Jacob paid a gift tax of $90,000. Determine Mandy's gain or loss if she later sells the stock for $2.3 million.

  Documentation for the monthly bank reconciliation process

Write the procedure documentation for the monthly bank reconciliation process in a professional manner and prepare the monthly bank reconciliation for The Gift Shop based on the information provided.

  Compute the amount of cash in total

Compute the amount of cash, in total, which the company can expect to collect in May and compute the budgeted dollar amount of inventory which the company should have on hand at the end of April.

  Determine the corrected amounts for 2010 cost of goods sold

Determine the corrected amounts for 2010 cost of goods sold and December 31, 2010, retained earnings.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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