Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 5, Problem 1QS
Summary Introduction
Introduction:
Inventory is a record of finished goods of a company which the can sell to the customer, work in progress which can be transform into finish good and raw material which is a means of production. Inventory is also classified as current asset in the balance sheet and it is valued by FIFO LIFO and weighted average method.
To determine: The units included in company’s period end inventory
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emma
looks over her inventory and finds that she has
1,100 units (products) in her basement, 24 of which were damaged by water and cannot be sold.
• 110 units in her van, ready to deliver per a customer order, terms FOB destination.
• 200 units out on consignment to a friend who owns a retail store.
How many total units should Emma include in her company's period-end inventory?
Units in Ending Inventory:
Units stored in basement
1,100 units
Add:
Less:
Total units in period-end inventory
units
Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emma
looks over her inventory and finds that she has
1,300 units (products) in her basement, 20 of which were damaged by water and cannot be sold.
• 350 units in her van, ready to deliver per a customer order, terms FOB destination.
• 80 units out on consignment to a friend who owns a retail store.
How many units should Emma include in her company's period-end inventory?
Units in Ending Inventory:
Units of Product on hand:
1,300 units
Add:
Less:
1,300 units
Total units in period-end inventory
ITEENILD
Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn’s house. At the end of the current period, Emma looks over her inventory and finds that she has ∙ 1,300 units (products) in her basement, 20 of which were damaged by water and cannot be sold. ∙ 350 units in her van, ready to deliver per a customer order, terms FOB destination. ∙ 80 units out on consignment to a friend who owns a retail store. How many units should Emma include in her company’s period-end inventory?
Chapter 5 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 5 - Describe how costs flow from inventory to cost of...Ch. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - If inventory errors are said to correct...Ch. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - When preparing interim financial statements, what...Ch. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - Prob. 11DQCh. 5 - Refer to Samsung’s financial statements in...Ch. 5 - Prob. 1QSCh. 5 - Prob. 2QSCh. 5 - Prob. 3QSCh. 5 - Prob. 4QSCh. 5 - Prob. 6QSCh. 5 - Prob. 7QSCh. 5 - Prob. 8QSCh. 5 - Prob. 9QSCh. 5 - Prob. 10QSCh. 5 - Prob. 11QSCh. 5 - Refer to the information in QS 5-10 and assume the...Ch. 5 - Prob. 13QSCh. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Prob. 17QSCh. 5 - Identify the inventory costing method best...Ch. 5 - Prob. 19QSCh. 5 - In taking a physical inventory at the end of the...Ch. 5 - Prob. 21QSCh. 5 - Confucious Bookstore’s inventory is destroyed by a...Ch. 5 - Answer each of the following questions related to...Ch. 5 - Prob. 24QSCh. 5 - Prob. 1ECh. 5 - Prob. 2ECh. 5 - Laker Company reported following January purchases...Ch. 5 - Prob. 7ECh. 5 - Prob. 8ECh. 5 - Prob. 9ECh. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Tree seedlins has the following current-year...Ch. 5 - Prob. 1PSACh. 5 - Prob. 2PSACh. 5 - Prob. 3PSACh. 5 - Prob. 5PSACh. 5 - Prob. 6PSACh. 5 - Prob. 7PSACh. 5 - QP Corp. sold 4,000 units of its product at $50...Ch. 5 - Prob. 9PSACh. 5 - Prob. 10PSACh. 5 - Prob. 1PSBCh. 5 - Prob. 2PSBCh. 5 - Prob. 3PSBCh. 5 - Prob. 4PSBCh. 5 - Prob. 5PSBCh. 5 - Hallam Company’s financial statements show the...Ch. 5 - Prob. 7PSBCh. 5 - Shepard Company sold 4,000 units of its product at...Ch. 5 - Prob. 9PSBCh. 5 - Prob. 10PSBCh. 5 - Santana Rey of Business solutions is evaluating...Ch. 5 - Prob. 5.2SPCh. 5 - Prob. 1FSACh. 5 - Prob. 2FSACh. 5 - Prob. 3FSACh. 5 - Golf Challenge Corp. is a retail sports store...Ch. 5 - Prob. 2BTNCh. 5 - Prob. 5BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 2 Homestead Crafts, a distributor of handmade gifts, operates out of owner Emma Finn's house. At the end of the current period, Emma looks over her inventory and finds 1,500 units (products) in the basement, 22 of which were damaged by water and cannot be sold. 170 units in the van, ready to deliver per a customer order, terms FOB destination. • 180 units out on consignment to a friend who owns a retail store. How many total units should Emma include in the company's period-end inventory? ● ● Units in Ending Inventory: Units stored in basement Add: Units on consignment Units in transit Less: Damaged units Total units in period-end inventory 1,500 units 1,300 350 80: 3,070 unitsarrow_forwardA master carver of wooden birds operates her business out of a garage. At the end of the current period,the carver has 17 units (carvings) in her garage, 3 of which were damaged by water and cannot be sold.She also has another 5 units in her truck, ready to deliver per a customer order, terms FOB destination,and another 11 units out on consignment at retail stores. How many units does she include in the business’speriod-end inventory?arrow_forwardBobbie Howell was at home when he received a call from the fire department telling him his store had burned. His business was a total loss. The insurance company asked him to prove his inventory loss. For the year, until the date of the fire, Bobbie’s company had sales of $900,000 and purchases of $560,000. Freight-in amounted to $27,400, and beginning inventory was $90,000. Bobbie’s always priced his goods to achieve a gross margin of 40 percent. Compute Bobbie’s estimated inventory loss. (Hint: Gross Profit Method).arrow_forward
- Stephanie Baskill, an unemployed accounting clerk, lives one block from Cleaver Manufacturing Company. While walking her dog last year, she noticed some ERP manuals in the dumpsters. Curious, she took the manuals home with her. She found that the documentation in the manual was dated 2 months previous, so she thought that the information must be fairly current. Over the next month,Stephanie continued to collect all types of manuals from the dumpster during her dog-walking excursions. Cleaver Manufacturing Company was apparently updating all of its documentation manuals and placing them online.Eventually, Stephanie found manuals about critical inventory reorder formulas, the billing system, the sales order system, the payables system, and the operating system. Stephanie went to the local library and read as much as she could about this particular operating system.To gain access to the organization, she took a low profile position as a cleaning woman, giving her access to all areas in…arrow_forwardScenario: Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split profits and losses equally, and each takes an annual drawing of $80,000. To even out the workload, Nance travels around the country inspecting their properties. Symington manages the business and serves as the accountant. From time to time, they use small amounts of store merchandise for personal use. In preparing for his daughter's wedding, Symington took inventory that cost $10,000. He recorded the transactions as follows: Debit Credit Cost of Goods Sold $10,000 Inventory $10,000 Respond to the following questions and, if appropriate, include personal experience as part of your answers. • How do you feel Symington should have recorded these transactions? Why? • What are the ethical implications of Symington's actions?arrow_forwardKate is an executive for the Cozy Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Cozy ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Cozy’s cost was $9,000. The company also paid for Kate’s parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Kate. However, the company does not pay other employees’ parking fees. Kate’s gross income from the above is: answer choices: $3,500. $4,100. $-0-. $900 $600.arrow_forward
- At the end of Year 1, Herkimer Co. sells two laptops for 1,800 each. Based on the information in RE11-6 in Year 1, prepare the journal entries to record the purchase of the laptops, the depreciation on the laptops, and the sale of the laptops.arrow_forwardEkon owns a small tow-truck business that responds to state patrol requests to tow cars involved in wrecks, as well as to private business requests from customers at various auto repair shops and individuals with stalled autos. Ekons business is open 24/7 for 365 days a year. He is starting to see too many repairs on his three trucks, which either means that he loses business or must divert a truck from another area. He is now trying to consider whether it is best to continue use of the current trucks or whether he needs to invest some money in new trucks. Using the steps for the process of capital decision-making, create an outline with sub-steps that include questions Ekon can use to guide his investigation or considerations of buying new truck.arrow_forwardMichele owns and operates her own business as a sole proprietorship. During the current year, she gave the following gifts to business clients. None of the employees of the receiving companies were to receive more than one gift. 50 desk sets imprinted with her company's name valued at $4 each to Company A 20 bottles of wine valued at $20 each to Company B 20 floral arrangements at a cost of $30 each to Company C $ 200 400 600 50 watches at a cost of $25 each to Company D Engraving the sole proprietorship's name on watches to Company D 1,250 100 What is the amount of business gifts Michele can deduct for the current year? O A. $2,350 O B. $2,750 O C. $2,450 O D. $2,650arrow_forward
- Peggy is an executive for the Tan Furniture Manufacturing Company. She purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture was $12,500, and Tan's cost was $9,000. The company also paid for Peggy's parking space in a garage near the office. The parking fee was $600 for the year. All employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. However, the company does not pay other employees' parking fees. Peggy's gross income from the above is: a. $4,100. b. $3,500. O c. $600. O d. $-0-.arrow_forwardYou are to refer to Kate Minimart operation below: Kate operates a minimart store located in a private estate. She invested $20,000 of her own funds and took an additional $10,000 bank loan to pay for the renovation and store fittings totaled $22,000, balance funds to use for operation needs. Kate paid a monthly rent of $5,000 for the store. The minimart sells a variety of goods estimated a total worth of $10,000. All sales are on cash basis amounting to about $12,000 to $14,000 each month. Kate is at a loss how to prepare the accounts for her business. You will perform the following: (0) Select an accounting principle and explain how it can be applied to Kate Minimart 3arrow_forward(iii) (iv) element Select THREE (3) transactions that Kate Minimart performs and illustrate their effect on the accounting equation. Select ONE (1) financial statement to prepare at period end. Describe the following: -the purpose of preparing the statement the key components ONE (1) user and how he can use its information provide a brief format of the selected financial statement (with no numbers).arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeBusiness Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
How to Calculate your Income Tax? Step-by-Step Guide for Income Tax Calculation; Author: ETMONEY;https://www.youtube.com/watch?v=QdJKpSXCYmQ;License: Standard YouTube License, CC-BY
How to Calculate Federal Income Tax; Author: Edspira;https://www.youtube.com/watch?v=2LrvRqOEYk8;License: Standard Youtube License