am.111. Valuation of InventoryReddall Company has a fiscal year that ends on December 31. The inventory on hand at the end of the year is valued at a cost of $94,000. The following items were not included in this inventory:1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,000, freight costs $250.2. Goods out on consignment to Marlman Company, sales price $5,600, cost of goods $3,050, shipping costs $300.3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 (which included $178 freight charges to deliver the goods) and have a cost of $1,260. Goods are in transit.4. Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price.5. Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190.Required:Determine the cost of the ending Inventory that Reddall should report on its December 31 balance sheet.105,872X

The inventory that is sold or distributed and that has been purchased as finished goods or requires…

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Required: Determine the cost of the ending inventory that Reddall should report on its December 31 balance sheet.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

am.111.

Valuation of Inventory
Reddall Company has a fiscal year that ends on December 31. The inventory on hand at the end of the year is valued at a cost of $94,000. The following items were not included in this inventory:
1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,000, freight costs $250.
2. Goods out on consignment to Marlman Company, sales price $5,600, cost of goods $3,050, shipping costs $300.
3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 (which included $178 freight charges to deliver the goods) and have a cost of $1,260. Goods are in transit.
4. Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price.
5. Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190.
Required:
Determine the cost of the ending Inventory that Reddall should report on its December 31 balance sheet.
105,872
X

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