Exercise 8-2 In your audit of Alan Company, you find that a physical inventory o

Question

Exercise 8-2 In your audit of Alan Company, you find that a physical inventory on December 31, 2017, showed merchandise with a cost of $400,350 was on hand at that date. You also discover the following items were all excluded from the $400,350. 1. Merchandise of $63,540 which is held by Alan on consignment. The consignor is the Max Suzuki Company. 2. Merchandise costing $39,530 which was shipped by Alan f.o.b. destination to a customer on December 31, 2017. The customer was expected to receive the merchandise on January 6, 2018. 3. Merchandise costing $43,150 which was shipped by Alan f.o.b. shipping point to a customer on December 29, 2017. The customer was scheduled to receive the merchandise on January 2, 2018. 4. Merchandise costing $90,100 shipped by a vendor f.o.b. destination on December 30, 2017, and received by Alan on January 4, 2018 5. Merchandise costing $50,500 shipped by a vendor f.o.b. shipping point on December 31, 2017, and received by Alan on January 5, 2018. Based on the above information, calculate the amount that should appear on Alan's balance sheet at December 31, 2017, for inventory. Inventory as on December 31, 2017 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Inventory per physical count 400350 Goods in transit to customer, f.o.b. destination 39530 Goods in transit from vendor, f.o.b. seller 50500 Inventory as on December 31 490380

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.