The Kwok Companys inventory balance on December 31, 2018, was $255,000 (based on a 12/31/18 physical count)
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Question:
The Kwok Company’s inventory balance on December 31, 2018, was $255,000 (based on a 12/31/18 physical count) before considering the following transactions:
- Goods shipped to Kwok f.o.b. destination on December 20, 2018, were received on January 4, 2019. The invoice cost was $48,000.
- Goods shipped to Kwok f.o.b. shipping point on December 28, 2018, were received on January 5, 2019. The invoice cost was $35,000.
- Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2018, were received by the customer on January 3, 2019. The sales price was $58,000 and the merchandise cost $40,000.
- Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2018, were received by the customer on December 30, 2018. The sales price was $38,000 and the merchandise cost $31,000.
- Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2018, were received by the customer on January 4, 2019. The sales price was $43,000 and the merchandise cost $30,000.
- Required:
Determine the correct inventory amount to be reported in Kwok’s 2018 balance sheet.
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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