Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 10, Problem 2EA
Company accepts goods on consignment from R Company and also purchases goods from S Company during the current month. E Company plans to sell the merchandise to customers during the following month. In each of these independent situations, who owns the merchandise at the end of the current month and should therefore include it in their company’s ending inventory? Choose E, R, or S.
A. Goods ordered from R, delivered and displayed on E’s showroom floor at the end of the current month.
B. Goods ordered from S, in transit, with shipping terms FOB destination.
C. Goods ordered from R, in transit, with no stated shipping terms.
D. Goods ordered from S, delivered and displayed on E’s showroom floor at the end of the current month, with shipping terms FOB destination.
E. Goods ordered from S, in transit, with shipping terms FOB shipping point.
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Patterson Company has the following items at year-end. Identify which items should be included in Patterson’s year-end inventory count.1. Goods held on consignment by Sell For You Company.2. Goods held by Patterson on consignment that will be sold for another company.3. Goods in transit sent to a client F.O.B. shipping point.4. Goods in transit sent to a client F.O.B. destination.
a. 1 & 4
b. 1, 2, 3, & 4
c. 1, 2, & 4
d. 1 & 3
Olivia Company completed the following transactions in December 2021. All purchased goods
are received by Olivia Company and sold goods are delivered before the end of the month.
Olivia uses perpetual inventory system. It records purchase and sales at gross amount.
| 2 Dec Purchased goods from Switch Co. for $88,000 with the terms of 1/10, n/30.
Sold goods on account $32,000, terms 1/15, n/30, to Fun Limited. The cost of
goods sold was $18,100.
Returned the defective goods costing $21,000 purchased on 2 December to Switch
4
7
Со.
Paid $5,400 for transportation cost of 4 December sale.
Fun Limited returned $5,000 of unsatisfactory goods from the 4 December sale to
Olivia Company. Olivia Company's cost for these goods was $1,300.
Purchased goods from Switch Co. for $38,000 with the terms of 2/10, n/30.
Received collections in full, from the Fun Limited for the sales in December.
Paid the outstanding amounts owed to Switch Co. in full.
Found inventory shortfall of $1,000 in the month-end…
Company E accepts goods on consignment from Company R and also purchases goods from Company S during the current month. Company E plans to sell the merchandise to customers during the following month.
In each of these independent situations, who owns the merchandise at the end of the current month and should therefore include it in their company's ending inventory?
Goods ordered from Company R, delivered and displayed on Company E's showroom floor at the end of the current month. [ Select ] ["Company S", "", "Company E", "Company R"]
Goods ordered from Company S, in transit, with shipping terms FOB destination. [ Select ] ["Company R", "Company E", "Company S"]
Goods ordered from Company R, in transit, with no stated shipping terms. [ Select ] ["Company E", "Company S", "Company R"]
Goods ordered…
Chapter 10 Solutions
Principles of Accounting Volume 1
Ch. 10 - If a company has four lots of products for sale,...Ch. 10 - If a company has three lots of products for sale,...Ch. 10 - When inventory items are highly specialized, the...Ch. 10 - If goods are shipped FOB destination, which of the...Ch. 10 - On which financial statement would the merchandise...Ch. 10 - When would using the FIFO inventory costing method...Ch. 10 - Which accounting rule serves as the primary basis...Ch. 10 - Which type or types of inventory timing system...Ch. 10 - Which of these statements is false? A. If cost of...Ch. 10 - Which inventory costing method is almost always...
Ch. 10 - Which of the following describes features of a...Ch. 10 - Which of the following financial statements would...Ch. 10 - Which of the following would cause periodic ending...Ch. 10 - Which of the following indicates a positive trend...Ch. 10 - What is meant by the term gross margin?Ch. 10 - Can a business change from one inventory costing...Ch. 10 - Why do consignment arrangements present a...Ch. 10 - Explain the difference between the terms FOB...Ch. 10 - When would a company use the specific...Ch. 10 - Explain why a company might want to utilize the...Ch. 10 - Describe the goal of the lower-of-cost-or-market...Ch. 10 - Describe two separate and distinct ways to...Ch. 10 - Describe costing inventory using first-in,...Ch. 10 - Describe costing inventory using last-in,...Ch. 10 - Describe costing inventory using weighted average....Ch. 10 - How long does it take an inventory error affecting...Ch. 10 - What type of issues would arise that might cause...Ch. 10 - Explain the difference between the flow of cost...Ch. 10 - What insights can be gained from inventory ratio...Ch. 10 - Calculate the goods available for sale for...Ch. 10 - Company accepts goods on consignment from R...Ch. 10 - The following information is taken from a companys...Ch. 10 - Complete the missing piece of information...Ch. 10 - Akira Company had the following transactions for...Ch. 10 - Akira Company had the following transactions for...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Prepare Journal entries to record the following...Ch. 10 - If a group of inventory items costing $15,000 had...Ch. 10 - If Wakowski Companys ending inventory was actually...Ch. 10 - Shetland Company reported net income on the...Ch. 10 - Compute Altoona Companys (a) inventory turnover...Ch. 10 - 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When prices are rising (inflation), which costing...Ch. 10 - Trini Company had the following transactions for...Ch. 10 - Trini Company had the following transactions for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Use the first-in, first-out (FIFO) cost allocation...Ch. 10 - Use the last-in, first-out (LIFO) cost allocation...Ch. 10 - Use the weighted-average (AVG) cost allocation...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Compare the calculations for gross margin for A76...Ch. 10 - Company Elmira reported the following cost of...Ch. 10 - Assuming a companys year-end inventory were...Ch. 10 - Use the following information relating to Shana...Ch. 10 - Use the following information relating to Clover...Ch. 10 - When prices are falling (deflation), which costing...Ch. 10 - DeForest Company had the following transactions...Ch. 10 - DeForest Company had the following transactions...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Use the first-in, first-out method (FIFO) cost...Ch. 10 - Use the last-in, first-out method (LIFO) cost...Ch. 10 - Use the weighted-average (AVG) cost allocation...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Compare the calculations for gross margin for B76...Ch. 10 - Company Edgar reported the following cost of goods...Ch. 10 - Assuming a companys year-end inventory were...Ch. 10 - Use the following information relating to Singh...Ch. 10 - Use the following information relating to Medinas...Ch. 10 - Assume your company uses the periodic inventory...Ch. 10 - Consider the dilemma you might someday face if you...Ch. 10 - Use a spreadsheet and the following excerpts from...
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