Problem 4: Various inventory issues (14 Points) The following independent situations relate to inventory accounting: 1....
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Problem 4: Various inventory issues (14 Points) The following independent situations relate to inventory accounting: 1. Calculate the 2021 cost of sales for Builder's Hardware using the following information extracted from the 2021 accounting records of Builder's Hardware: Beginning inventory Purchases Freight-in Transportation to consignees Freight-out Ending inventory Balance at November 1 Purchases: November 9 November 25 Sales: November 12 November 29 Balance at November 30 Builder's Main Warehouse S 256,000 S $ 985,000 $ $ 55,200 2. Naybaz Store took a physical inventory at the end of the year and determined that $945,000 of goods were on hand. In addition, the following items were not included in the physical count. Naybaz Store determined that $75,300 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count). The company sold $52,600 worth of inventory fo.b. destination. What amount should Naybaz Store report as inventory at the end of the year? Use the following information to answer question 3 and 4 The following inventory record was for Timber Cube for November: Units Unit Cost S $ 25,000 S $ 325,450 S Builder's Goods Held by Consignees 25,000 S 8,500 $ 12,900 S (11,400) (19,850) 15,150 16,250 86,900 15,000 8,000 24,900 Total Cost 10.75 $268,750 11.35 $ 96,475 12.15 $156,735 3. Assuming that Art Box does not maintain perpetual inventory records, what should be the inventory at November 30, using the weighted-average inventory method, rounded to the nearest dollar? 4. Assuming that Art Box maintains perpetual inventory records, what should be the inventory at November 30, using the moving-average inventory method, rounded to the nearest dollar? Problem 4: Various inventory issues (14 Points) The following independent situations relate to inventory accounting: 1. Calculate the 2021 cost of sales for Builder's Hardware using the following information extracted from the 2021 accounting records of Builder's Hardware: Beginning inventory Purchases Freight-in Transportation to consignees Freight-out Ending inventory Balance at November 1 Purchases: November 9 November 25 Sales: November 12 November 29 Balance at November 30 Builder's Main Warehouse S 256,000 S $ 985,000 $ $ 55,200 2. Naybaz Store took a physical inventory at the end of the year and determined that $945,000 of goods were on hand. In addition, the following items were not included in the physical count. Naybaz Store determined that $75,300 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count). The company sold $52,600 worth of inventory fo.b. destination. What amount should Naybaz Store report as inventory at the end of the year? Use the following information to answer question 3 and 4 The following inventory record was for Timber Cube for November: Units Unit Cost S $ 25,000 S $ 325,450 S Builder's Goods Held by Consignees 25,000 S 8,500 $ 12,900 S (11,400) (19,850) 15,150 16,250 86,900 15,000 8,000 24,900 Total Cost 10.75 $268,750 11.35 $ 96,475 12.15 $156,735 3. Assuming that Art Box does not maintain perpetual inventory records, what should be the inventory at November 30, using the weighted-average inventory method, rounded to the nearest dollar? 4. Assuming that Art Box maintains perpetual inventory records, what should be the inventory at November 30, using the moving-average inventory method, rounded to the nearest dollar?
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Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
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