PROBLEM 1

SOKOR COMPANY PROVIDED THE FOLLOWING DATA:

ITEMS INCLUDED IN THE BODEGA

ITEMS INCLUDED IN THE COUNT SPECIFICALLY SEGREGATED PER SALE CONTRACT
ITEMS IN RECEIVING DEPARTMENT, RETURNED CUSTOMER IN GOOD CONDITION
ITEMS ORDERED AND IN THE RECEIVING DEPARTMENT
ITEMS ORDERED, INVOICE RECEIVED BUT GOODS NOT RECEIVED
ITEMS SHIPPED TODAY, INVOICE MAILED, FOB SHIPPING POINT
ITEMS SHIPPED TODAY, INVOICE MAILED, FOB DESTINATION
ITEMS CURRENTLY BEING USED FOR WINDOW DISPLAY
ITEMS ON COUNTER FOR SALE
ITEMS IN RECEIVING DEPARTMENT, REFUSED BECAUSE OF DAMAGE
ITEMS INCLUDED IN COUNT, DAMAGED AND UNSALABLE
ITEMS IN THE SHIPPING DEPARTMENT

WHAT IS THE CORRECT AMOUNT OF INVENTORY?

COMPUTATIONS:
ITEMS INCLUDED IN THE BODEGA
ITEMS INCLUDED IN THE COUNT SPECIFICALLY SEGREGATED PER SALE CONTRACT
ITEMS IN RECEIVING DEPARTMENT, RETURNED CUSTOMER IN GOOD CONDITION
ITEMS ORDERED AND IN THE RECEIVING DEPARTMENT
ITEMS SHIPPED TODAY, INVOICE MAILED, FOB DESTINATION
ITEMS CURRENTLY BEING USED FOR WINDOW DISPLAY
ITEMS ON COUNTER FOR SALE
ITEMS INCLUDED IN COUNT, DAMAGED AND UNSALABLE
ITEMS IN THE SHIPPING DEPARTMENT

CORRECT AMOUNT OF INVENTORY

4,000,000
100,000
50,000
400,000
300,000
250,000 Buyer
150,000 Seller
200,000
800,000
180,000
50,000
250,000

4,000,000
-100,000
50,000
400,000
150,000
200,000
800,000
-50,000
250,000

5,700,000
PROBLEM 2:

SC Company provided the following information for the current year.

Merchandise Held for resale 4,000,000

Freight In 100,000
Freight Out 50,000
Purchase Returns 20,000
Interest on Inventory Loan 200,000

WHAT IS THE INVENTORIABLE COST OF THE PURCHASE?

MERCHANDISE HELD FOR SALE 4,000,000

FREIGHT IN buyer will pay 100,000
PURCHASE RETURNS -20,000

INVENTORIABLE COST OF THE PURCHAS 4,080,000

Net purchase merch/purchase add freight in less returns

freight outseller will pay

PROBLEM 3:

QUICKIE COMPANY HAD THE FOLLOWING TRANSACTIONS DURING DECEMBER 2021

INVENTORY SHIPPED ON CONSIGNMENT TO BETA COMPANY 1,800,000

FREIGHT PAID BY QUICKIE 90,000
INVENTORY RECEIVED ON CONSIGNMENT FROM ALPHA COMPANY 1,200,000
FREIGHT PAID BY ALPHA 50,000

NO SALES OF CONSIGNED GOODS WERE MADE IN DECEMBER 2021

WHAT AMOUNT SHOULD BE INCLUDED IN INVENTORY ON DECEMBER 31, 2021?

INVENTORY SHIPPED ON CONSIGNMENT TO BETA COMPANY 1,800,000

FREIGHT PAID BY QUICKIE 90,000

INVENTORY ON DECEMBER 31, 2021 1,890,000

PROBLEM 4:

VACAY COMPANY COUNTED AND REPORTED THE ENDING INVENTORY ON DECEMBER 31, 2021 AT P 2,000,000

NONE OF THE FOLLOWING ITEMS WERE INCLUDED WHEN THE TOTAL AMOUNT OF THE ENDING INVENTORY WAS COMPUTED

GOODS LOCATED IN THE ENTITY'S WAREHOUSE THAT ARE ON CONSIGNMENT FROM ANOTHER ENTITY

GOODS SOLD BY THE ENTITY AND SHIPPED ON DECEMBER 30 FOB DESTINATION WERE IN TRANSIT ON DEC 31, 2021
AND RECEIVED BY THE CUSTOMER ON JANUARY 2, 2022

GOODS PURCHASED BY THE ENTITY AND SHIPPED ON DECEMBER 30 FOB SHIPPING POINT WERE IN TRANSIT
ON DECEMBER 31, 2021 AND RECEIVED BY THE ENTITY ON JANUARY 2, 2021

GOODS SOLD BY THE ENTITY AND SHIPPED ON DEC 30 FOB SHIPPING POINT WERE IN TRANSIT ON DECEMBER 31, 2021
AND RECEIVED BY THE CUSTOMER ON JANUARY 2, 2022

WHAT IS THE CORRECT AMOUNT OF INVENTORY ON DECEMBER 31, 2021?

Inventory Reported 2,000,000

Goods Sold in Transit ( FOB Destination) 200,000
Goods purchased in transit (FOB Shipping Point) 300,000

CORRECT AMOUNT OF INVENTORY 2,500,000

AT P 2,000,000

INVENTORY WAS COMPUTED.

150,000

IT ON DEC 31, 2021 200,000

IN TRANSIT 300,000

N DECEMBER 31, 2021 400,000

PROBLEM 5:

SUMMER COMPANY CONDUCTED A PHYSICAL COUNT ON DECEMBER 31, 2021 WHICH REVEALED INVENTORY WITH A COST O

THE FOLLOWING ITEMS WERE EXCLUDED FROM THE PHYSICAL COUNT.

MERCHANDISE HELD BY SUMMER ON CONSIGNMENT

MERCHANDISE SHIPPED BY SUMMER FOB DESTINATION TO A CUSTOMER ON DECEMBER 31, 2021

AND WAS RECEIVED BY THE CUSTOMER ON JANAURY 5, 2022

MERCHANDISE SHIPPED BY SUMMER FOB SHIPPING POINT TO A CUSTOMER ON DECEMBER 31, 2021 AND
WAS RECEIVED BY THE CUSTOMER ON JANUARY 5, 2022

MERCHANDISE SHIPPED BY A VENDOR FOB DESTINATION ON DECEMBER 31, 2021 AND WAS RECEIVED
BY SUMMER ON JANUARY 5, 2022

MERCHANDISE PURCHASED FOB SHIPPING POINT WAS SHIPPED BY THE SUPPLIER ON DECEMBER 31, 2021
AND RECEIVED BY SUMMER ON JANUARY 5, 2021

WHAT IS THE CORRECT AMOUNT OF INVENTORY ON DECEMBER 31, 2021?

Reported Inventory
MERCHANDISE SHIPPED BY SUMMER FOB DESTINATION TO A CUSTOMER ON DECEMBER 31, 2021
AND WAS RECEIVED BY THE CUSTOMER ON JANAURY 5, 2022
MERCHANDISE PURCHASED FOB SHIPPING POINT WAS SHIPPED BY THE SUPPLIER ON DECEMBER 31, 20
AND RECEIVED BY SUMMER ON JANUARY 5, 2021

Ccorrect amount of Inventory

EVEALED INVENTORY WITH A COST OF P 4,410,000

610,000 X

380,000

BER 31, 2021 AND 460,000 X

WAS RECEIVED 830,000 X

CEMBER 31, 2021 510,000

4,410,000
TOMER ON DECEMBER 31, 2021 380,000

THE SUPPLIER ON DECEMBER 31, 20 510,000

5,300,000