Al Shams Company completed its inventory count. It arrived at a total inventory value of OMR 30,000. As a new member of Al Shams accounting department, you have been given the information listed below. Discuss how this information affects the reported cost of inventory. 1. Al Shams included in the inventory goods held on consignment for Al Najm Co., costing OMR 2000. 2. The company did not include in the count purchased goods of OMR 3,000 which were in transit (terms: FOB destination). 3. The company did not include in the count sold inventory with a cost of OMR 1,500 which was in transit (terms: FOB
Al Shams Company completed its inventory count. It arrived at a total inventory value of OMR 30,000. As a new member of Al Shams accounting department, you have been given the information listed below. Discuss how this information affects the reported cost of inventory. 1. Al Shams included in the inventory goods held on consignment for Al Najm Co., costing OMR 2000. 2. The company did not include in the count purchased goods of OMR 3,000 which were in transit (terms: FOB destination). 3. The company did not include in the count sold inventory with a cost of OMR 1,500 which was in transit (terms: FOB
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 37BE: Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was...
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