Period End Inventory: Period end inventory refers to the units remaining at the end of the fiscal year which are yet to be sold. Units to be included in the period end inventory.

Question

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Answer 1

Question

Chapter 5, Problem 1QS

To determine

Period End Inventory:

Period end inventory refers to the units remaining at the end of the fiscal year which are yet to be sold.

Units to be included in the period end inventory.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

Total units of period end inventory,

Particulars	Units of inventory
Units stored in basement	1300
Less: Damaged units	(20)
Add: Units in transit	350
Add: Units on consignment	80
Total units of ending inventory	1,710

Explanation of Solution

Units which got damaged should not be included as it is a loss.
Units in transit are considered as a part of ending inventory as the agreement is of Free on Board (FOB) destination and they are yet to be delivered though placed in the delivery vehicle and still are the responsibility of the seller.
Units out on consignment are yet to be sold thus will be included.

Conclusion

The period end inventory is 1,710.

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Answer 2

Question

Chapter 5, Problem 1QS

To determine

Period End Inventory:

Period end inventory refers to the units remaining at the end of the fiscal year which are yet to be sold.

Units to be included in the period end inventory.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

Total units of period end inventory,

Particulars	Units of inventory
Units stored in basement	1300
Less: Damaged units	(20)
Add: Units in transit	350
Add: Units on consignment	80
Total units of ending inventory	1,710

Explanation of Solution

Units which got damaged should not be included as it is a loss.
Units in transit are considered as a part of ending inventory as the agreement is of Free on Board (FOB) destination and they are yet to be delivered though placed in the delivery vehicle and still are the responsibility of the seller.
Units out on consignment are yet to be sold thus will be included.

Conclusion

The period end inventory is 1,710.

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Answer 3

Question

Chapter 5, Problem 1QS

To determine

Period End Inventory:

Period end inventory refers to the units remaining at the end of the fiscal year which are yet to be sold.

Units to be included in the period end inventory.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

Total units of period end inventory,

Particulars	Units of inventory
Units stored in basement	1300
Less: Damaged units	(20)
Add: Units in transit	350
Add: Units on consignment	80
Total units of ending inventory	1,710

Explanation of Solution

Units which got damaged should not be included as it is a loss.
Units in transit are considered as a part of ending inventory as the agreement is of Free on Board (FOB) destination and they are yet to be delivered though placed in the delivery vehicle and still are the responsibility of the seller.
Units out on consignment are yet to be sold thus will be included.

Conclusion

The period end inventory is 1,710.

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Answer 4

Question

Chapter 5, Problem 1QS

To determine

Period End Inventory:

Period end inventory refers to the units remaining at the end of the fiscal year which are yet to be sold.

Units to be included in the period end inventory.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

Total units of period end inventory,

Particulars	Units of inventory
Units stored in basement	1300
Less: Damaged units	(20)
Add: Units in transit	350
Add: Units on consignment	80
Total units of ending inventory	1,710

Explanation of Solution

Units which got damaged should not be included as it is a loss.
Units in transit are considered as a part of ending inventory as the agreement is of Free on Board (FOB) destination and they are yet to be delivered though placed in the delivery vehicle and still are the responsibility of the seller.
Units out on consignment are yet to be sold thus will be included.

Conclusion

The period end inventory is 1,710.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1QS

To determine

Period End Inventory:

Period end inventory refers to the units remaining at the end of the fiscal year which are yet to be sold.

Units to be included in the period end inventory.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

Total units of period end inventory,

Particulars	Units of inventory
Units stored in basement	1300
Less: Damaged units	(20)
Add: Units in transit	350
Add: Units on consignment	80
Total units of ending inventory	1,710

Explanation of Solution

Units which got damaged should not be included as it is a loss.
Units in transit are considered as a part of ending inventory as the agreement is of Free on Board (FOB) destination and they are yet to be delivered though placed in the delivery vehicle and still are the responsibility of the seller.
Units out on consignment are yet to be sold thus will be included.

Conclusion

The period end inventory is 1,710.

Answer 6

Chapter 5, Problem 1QS

To determine

Period End Inventory:

Period end inventory refers to the units remaining at the end of the fiscal year which are yet to be sold.

Units to be included in the period end inventory.

Expert Solution & Answer

Answer to Problem 1QS

Solution:

Total units of period end inventory,

Particulars	Units of inventory
Units stored in basement	1300
Less: Damaged units	(20)
Add: Units in transit	350
Add: Units on consignment	80
Total units of ending inventory	1,710

Explanation of Solution

Units which got damaged should not be included as it is a loss.
Units in transit are considered as a part of ending inventory as the agreement is of Free on Board (FOB) destination and they are yet to be delivered though placed in the delivery vehicle and still are the responsibility of the seller.
Units out on consignment are yet to be sold thus will be included.

Conclusion

The period end inventory is 1,710.

Answer 7

Chapter 5, Problem 1QS

To determine

Period End Inventory:

Period end inventory refers to the units remaining at the end of the fiscal year which are yet to be sold.

Units to be included in the period end inventory.

Answer 8

Expert Solution & Answer

Answer to Problem 1QS

Solution:

Total units of period end inventory,

Particulars	Units of inventory
Units stored in basement	1300
Less: Damaged units	(20)
Add: Units in transit	350
Add: Units on consignment	80
Total units of ending inventory	1,710

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Units which got damaged should not be included as it is a loss.
Units in transit are considered as a part of ending inventory as the agreement is of Free on Board (FOB) destination and they are yet to be delivered though placed in the delivery vehicle and still are the responsibility of the seller.
Units out on consignment are yet to be sold thus will be included.