E7-1 (Static) Reporting Goods in Transit and Consignment Inventory [LO 7-1] The RealReal, Incorporated, is a public company that sells authenticated luxury goods, similar to Second Chance Clothing (SCC). SCC acquires its goods on consignment and through purchase. The following events occurred close to SCC's October 31 year-end. Required: Indicate (Yes or No) whether SCC should include each item in its inventory balance at October 31. a. On November 2, SCC received goods on consignment from Apparel Corporation. b. On October 31, SCC received goods on consignment from Apparel Corporation. c. Goods in transit to SCC were shipped by Shoe, Incorporated, on October 31, FOB shipping point. d. Goods in transit to SCC were shipped by Shoe, Incorporated, on October 31, FOB destination.

E7-1 (Static) Reporting Goods in Transit and Consignment Inventory [LO 7-1] The RealReal, Incorporated, is a public company that sells authenticated luxury goods, similar to Second Chance Clothing (SCC). SCC acquires its goods on consignment and through purchase. The following events occurred close to SCC's October 31 year-end. Required: Indicate (Yes or No) whether SCC should include each item in its inventory balance at October 31. a. On November 2, SCC received goods on consignment from Apparel Corporation. b. On October 31, SCC received goods on consignment from Apparel Corporation. c. Goods in transit to SCC were shipped by Shoe, Incorporated, on October 31, FOB shipping point. d. Goods in transit to SCC were shipped by Shoe, Incorporated, on October 31, FOB destination.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 12GI: Consider each of the following independent situations. Should a company report the goods in its...

See similar textbooks

Similar questions

Requlred Information [The following informetion applies to the questions dlisplayed below) Grant Enterprises and Lee Corporation report the following smounts for the year Grant $ 38,800 24,0 355,280 21,8ae Lee $ 56,00 Inventory (beginning) Inventory (ending) Purchases 185,8aa Purchase returns Requlred: 1. Calculate cost of goods sold for esch compeny Grant Lee Boginning inventory Cost of goods available for sale Cost of goods sold
E6-3 Gato Inc. had the following inventory situations to consider at January 31, its year-end. (a) Goods held on consignment for Steele Corp. since December 12. b) Goods shipped on consignment to Logan Holdings Inc. on January 5. (c) Goods shipped to a customer, FOB destination, on January 29 that are still in transit. (d) Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit. (e) Goods purchased FOB destination from a supplier on January 25 that are still in transit. (f) Goods purchased FOB shipping point from a supplier on January 25 that are still in transit. (g) Office supplies on hand at January 31. 000 at Augus bago Inc dust 29, 2017. Instructions Identify which of the preceding items should be included in inventory. If the item should not be included in inventory, state in what account, if any, it should have been recorded. 9ivin rbizno i teriT bas ins lemU
Check my work Required information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 [The following information applies to the questions displayed below.] Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Unit Units Cost Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($53 each) Operating expenses (excluding income tax expense) 2,960 $13 8,870 7,890 10,890 14 19 $189,000 E7-7 Part 2 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Case B FIFO LIFO Difference Pretax income Ending inventory Drov of 7 Noxt
E6.3 (LO 1), AN Gato Inc. had the following inventory situations to consider at January 31, its year-end. a. Goods held on consignment for Steele Corp. since December 12. b. Goods shipped on consignment to Logan Holdings Inc. on January 5. c. Goods shipped to a customer, FOB destination, on January 29 that are still in transit. d. Goods shipped to a customer, FOB shipping point, on January 29 that are still in transit. e. Goods purchased FOB destination from a supplier on January 25 that are still in transit. f. Goods purchased FOB shipping point from a supplier on January 25 that are still in transit. g. Office supplies on hand at January 31. Instructions Identify which of the preceding items should be included in inventory. If the item should not be included in inventory, state in what account, if any, it should have been recorded. Identify items in inventory.
E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inventory, December 31, prior year For the current year: Purchase, March 21 Ending inventory Cost of goods sold $ $ FIFO Purchase, August 1 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount. 40,010 $ 66,270 $ LIFO Units 1,910 5,010 2,910 4,010 26,190 $ 51,540 $ Unit Cost $6 Average Cost 8 9 45,782 77,514
E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Ending inventory Cost of goods sold Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount. $ FIFO 31,510 $ LIFO Units 1,940 24,680 $ 5,050 2,950 4,080 Average Cost Unit Cost $5 7 88 7
E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Units 1,830 Unit Cost $ 4 5,150 6 2,840 4,060 7 Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount. Ending inventory Cost of goods sold FIFO LIFO Average Cost
The RealReal, Incorporated, is a public company that sells authenticated luxury goods, similar to Second Chance Clothing (SCC). SCC acquires its goods on consignment and through purchase. The following events occurred close to SCC's October 31 year-end. Required: Indicate (Yes or No) whether SCC should include each item in its inventory balance at October 31. a. On November 2, SCC received goods on consignment from Apparel Corporation. b. On October 31, SCC received goods on consignment from Apparel Corporation. c. Goods in transit to SCC were shipped by Shoe, Incorporated, on October 31, FOB shipping point. d. Goods in transit to SCC were shipped by Shoe, Incorporated, on October 31, FOB destination. DSBRE, A-JIL IN HET DESNI ROLUN he hostesa q
E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost L07-2 Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inventory, December 31, prior year For the current year: Purchase, March 21 Units 1,950 Unit Cost $ 5 5,110 2,940 4,020 8 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount. Purchase, August 1 FIFO LIFO Average Cost Ending inventory Cost of goods sold $ 4,020 S 9,163 $ 4,020 $ 13,360 4,020 13
E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 [The following information applies to the questions displayed below.] Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Unit Units Cost Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($56 each) Operating expenses (excluding income tax expense) 2,990 $13 8,970 7,940 10,850 14 19 $192,500 E7-7 Part 2 2. Compute the difference between the pretax income and the ending inventory amount for the two cases. Comparison of Amounts Case A Case B FIFO LIFO Difference Pretax income $ 266,190 $ 223,500 $ 42,690 Ending inventory 8,758 $ 9,516 $
E7-5 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Unit Units Cost 1,850 $ 7 5,030 9 2,810 4,020 10 Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount. Ending inventory Cost of goods sold FIFO LIFO Average Cost
E7-6 (Algo) Calculating Ending Inventory and Cost of Goods Sold Under FIFO, LIFO, and Average Cost LO7-2 Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Ending inventory Cost of goods sold FIFO Units Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August 1 Inventory, December 31, current year Required: Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. Note: Round "Average cost per unit" to 4 decimal places and final answers to nearest whole dollar amount. LIFO 1,920 Unit Cost $6 5 6,110 4,060 3 2,810 Average Cost