Question

Alto Imports ending inventory was assigned a cost of $14,600 as a result of a physical...

Alto Imports ending inventory was assigned a cost of $14,600 as a result of a physical stock-take on 30 June 2020.

A review of the company’s records revealed the following information:
·         Alto Imports had recorded a $2,900 invoice (excluding GST) from a supplier for goods shipped ExW on 26 June 2020.  The goods were not included in the physical inventory count because they had not yet arrived at the warehouse of Alto Imports by 30 June.
·         Alto Imports had recorded a $1,900 invoice (excluding GST) from a supplier for goods shipped DPP on 28 June 2020.  The goods were not included in the physical inventory count because they had not yet arrived at the warehouse of Alto Imports by 30 June.
·         Alto Imports had goods valued at $3,600 (excluding GST) out on consignment on 30 June 2020 that were included in the physical inventory count.

Required:

a.    For each of the above, determine the effects on Alto Imports 30 June inventory account balances.

b.    What is correct value of inventory on hand at 30 June 2020?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Determining Merchandise to be Included or Excluded from Ending Inventory The unadjusted inventory balance of Sara...
Determining Merchandise to be Included or Excluded from Ending Inventory The unadjusted inventory balance of Sara Ann Corp. is $450,000 on December 31, 2020, based on a physical inventory count. The following items must be considered before the inventory valuation is finalized. a. On December 31, the physical inventory excluded $450 of merchandise inventory shipped to Sara Ann Corp. from a vendor f.o.b. shipping point that arrived on January 1, 2021. b. On December 31, the physical inventory excluded $16,200...
Question: The inventory ledger account balance on June 30, 2019, was $15,300, and net realisable value...
Question: The inventory ledger account balance on June 30, 2019, was $15,300, and net realisable value for each product line exceeded the cost. The cost of inventory on hand June 30, 2019, determined by physical count, however, was only $15,156. In investigating the reasons for the discrepancy, Boodja-Dooga Ltd discovered the following. Goods costing $174 were sold for $220 (GST Inclusive) on June 26, 2019, on FOB destination (seller pays shipping) shipping terms. The goods were in transit on June...
Question 2 (SHOW ALL WORKINGS) You have been provided with the following information for LnS Shoe...
Question 2 (SHOW ALL WORKINGS) You have been provided with the following information for LnS Shoe Outlet which accounts for its inventory using the periodic system. Its financial year ends September 30. All purchases and sales are made on account. • Physical count at beginning of September 30, 2020 valued inventory of shoes at $469,780. • Included in the physical count was shoes purchased for $20,840 on September 17 from Kmart. The shoes were shipped f.o.b. destination point on September...
A shipment of inventory valued at $1,500 was shipped by a supplier on March 28, 2020,...
A shipment of inventory valued at $1,500 was shipped by a supplier on March 28, 2020, scheduled to arrive at PHL on March 30, 2020, but it arrived on April 3, 2020. It was delayed because it was shipped by truck and got caught in a snowstorm. The shipment was FOB shipping point. Joan records shipments based on the arrival date at the company’s warehouse and therefore no entry had been made to include the inventory. Of course it was...
Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume...
Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume the books have not been closed. 1. Craig uses the periodic method of recording inventory. A physical count reveals $299,250 of inventory on hand at December 31, 2014. 2. Not included in the physical count of inventory is $17,097 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point on December 29 and arrived in January. The invoice arrived...
E8.5B (L0 2) (Inventoriable Goods and Costs—Error Adjustments) Wycliffe Company asks you to review its December...
E8.5B (L0 2) (Inventoriable Goods and Costs—Error Adjustments) Wycliffe Company asks you to review its December 31, 2020, inventory values and prepare the necessary adjustments to the books. The following information is given to you: 1. Wycliffe uses the periodic method of recording inventory. A physical count reveals $561,810 of inventory on hand at December 31, 2020. 2. Not included in the physical count of inventory is $21,500 of merchandise purchased on December 20. This merchandise was shipped f.o.b. destination...
You have been provided with the following information for LnS Shoe Outlet which accounts for its...
You have been provided with the following information for LnS Shoe Outlet which accounts for its inventory using the periodic system. Its financial year ends September 30. All purchases and sales are made on account. - Physical count at beginning of September 30, 2020 valued inventory of shoes at $469,780. - Included in the physical count was shoes purchased for $20,840 on September 17 from Kmart. The shoes were shipped f.o.b. destination point on September 30 and arrived October 7....
You have been provided with the following information for LnS Shoe Outlet which accounts for its...
You have been provided with the following information for LnS Shoe Outlet which accounts for its inventory using the periodic system. Its financial year ends September 30. All purchases and sales are made on account. § Physical count at beginning of September 30, 2020 valued inventory of shoes at $469,780. § Included in the physical count was shoes purchased for $20,840 on September 17 from Kmart. The shoes were shipped f.o.b. destination point on September 30 and arrived October 7....
You have been provided with the following information for LnS Shoe Outlet which accounts for its...
You have been provided with the following information for LnS Shoe Outlet which accounts for its inventory using the periodic system. Its financial year ends September 30. All purchases and sales are made on account. Physical count at beginning of September 30, 2020 valued inventory of shoes at $469,780. Included in the physical count was shoes purchased for $20,840 on September 17 from Kmart. The shoes were shipped f.o.b. destination point on September 30 and arrived October 7. The invoice...
The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to...
The December 31, 2021, inventory of Tog Company, based on a physical count, was determined to be $464,000. Included in that count was a shipment of goods received from a supplier at the end of the month that cost $64,000. The purchase was recorded and paid for in 2022. Another supplier shipment costing $27,000 was correctly recorded as a purchase in 2021. However, the merchandise, shipped FOB shipping point, was not received until 2022 and was incorrectly omitted from the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT