Seemore lens company sells contact lenses fob destination

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Reference no: EM13971972

Determine the correct Inventory Balance

Seemore Lens Company(SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory of $70,000 and Cost of goods sold of $420,000.

A. Included in Inventory (and Accounts Payable) are $10,000 of lenses held on consignment.

B. Included in the Inventory Balance are $5,000 of office supplies held in SLC's warehouse.

C. Excluded from the inventory balance are $8,000 of lenses in the warehouse, ready to send to customers on January 1. SLC reported these lenses as sold on December 31, at a price of $15,000.

D. Included in the Inventory balance are $3,000 of lenses that were damaged in December and will be scrapped in January, with no recoverable value.

	Inventory	Cost of Goods Sold
Present Balance	70000	420000
a. Less Inventory held on consignment	-10000	+10000
b. Less supplies in inventory	-5000	+5000
c. Add goods sold but not dispatched	+8000	-8000
d. Less : goods damaged	-3000	+3000
Appropriate Balance	52000	412000

Reference no: EM13971972

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