PROBLEM 1

Jane Inc
Reported Units on April 30 10,200
Adjustments:

Less: No. 1 Item -

Purchased FOB destination still in
transit but included in purchases -300

Add: No. 4 Item old FOB

destination still in transit but
takenas sale and excluded in
inventory 500
Correct inventory 10,400
Entries:
Freight In 300
Cash 300
Paid Freight bill

Delivery Expense 500

Cash 500
To record freight out
PROBLEM 2

Orient Traiding

Inventory at the end of 2020 9,500,000

Merchandise e in transit purchased FOB -420,000
destination
Goods held on consignment -500,000
Mark up on goods out on consignment
Sales 600,000
Cost 400,000 -200,000
Merchandise in transit to customers FOB
destination 240,000
8,620,000

ENTRIES:

Purchases 400,000
Freight in 20,000
Cash 420,000

Finished Goods Inventory 500,0000

Inventory on consignment 500,000

Inventory on consignment 600,000

Finished Goods Inventory 600,000

Expenses 400,000
Cash 400,000

Finished Goods Inventory 240,000

Cost of goods sold 240,000
PROBLEM 3

 Centerpoint, Inc.
Inventory is valued at 562,500
Adjustments:
a. Goods out on consignment 110,000
b. Good purchased in transit FOB shipping point 27,000
c. Goods sold in transit FOB shipping point included in inventory -85,000
d. Goods sold in transit FOB destination not included in inventory 26,000
e. Goods sold in transit FOB Destination not included in inventory 37,000
Correct inventory 677,500

Entries

Inventory on consignment 110,000

Finished Goods Inventory 110,000

Purchases 27,000
Accounts Payable 27,000

Cost of goods sold 85,000

Finished goods inventory 85,000

Finished Goods Inventory 26,000

Cost of goods sold 26,000

Finished Goods Inventory 37,000

Cost of goods sold 37,000
PROBLEM 4

Requirement A
UNITS UNIT COST TOTAL COST
1-Jan Beg. Bal. 2,400 10.75 25,800
5-Jan 1,900 11.35 21,565
Bal. 4,300 11.02 47,365
8-Jan Sale (2,200) 11.02 (24,244)
Bal. 2,100 11.02 23,121
24-Jan Purchases 3,800 11.80 44,840
Bal. 5,900 11.52 67,961
30-Jan Sale 3,600 11.52 41,472
31-Jan End bal. 2,300 11.52 26,489

Requirement B

1-Jan Beg bal 2,400.00 10.75 25,800.00

5-Jan Purchases 1,900.00 11.35 21,565.00
Purchases 3,800.00 11.80 44,840.00
TOTAL 8,100.00 11.38 92,205.00
COGS (5,800.00) 11.38 (66,004.00)
End Bal. 2,300.00 11.38 26,201.00
  Ending Inventory 45,000
PROBLEM 5 + Units Sold 48,000
- Units Purchased -42,000
Rockwell Club, Inc Beginning Inventory 51,000

Cost of Goods Sold 1, 187,400

Less: January 4 Purchases

30,000 *7.80

-234,000

January 10 Purchases
37,500 * 7.50

-281,250

January 16 Purchases
42,000 * 7.20

302,400
TOTAL COST 369,750

Unit Average Cost = Total Beginning Inventory Cost / Beginning Inventory Units
369,750/51,000 = 7.25

Unit Average Cost - 7.25

Sales (160,500*12) 1,926,000
- Gross Profit -738,600
Cost of Goods Sold 1,187,400
PROBLEM 6
DEC COMPANY

Merchandise Inventory, Jan 1, 2020 450,000

Purchase for the year 3,150,000
Cost of Goods Available for sale 3,600,000
Less estimated cost of goods sold (4,000,000
x 70%) 2,800,000
Estimated cost of ending inventory 800,000
Physical inventory on Dec 31, 2020 750,000
Estimated cost of the missing inventory 50,000
PROBLEM 7

Estimated cost of good sold (705,000 -

18,000) / 1.20 572,500.00
Add Inventory, July 31,2020 205,000.00
cost of goods available for sale 777,500.00
Less net purchases for the period
(650,000 - 12,000 + 6,000) 644,000.00
Estimated cost of June 31, 2020
inventory 133,500.00
PROBLEM 8
GRAND COMPANY

Net income reported for 2020 658,000

Adjustments:
Overstatement of beginning inventory 71,000
Understatement of beginning inventory 96,000
Cash advance for future manufacture and
delivery of goods credited to sales revenue
-60,000
Correct net income for 2020 765,000