A company purchased a piece of equipment by paying $11,000 cash. A shipping cost of $700 to get the equipment to its factory was also incurred. The fair value of the equipment was $8,200 at the time of the purchase. For what amount should the company record the equipment?
Read DetailsNorthwest Fur Company started the year with $94,000 of inventory on hand. During the year, $490,000 in inventory was purchased on account with credit terms of , . All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,200. Inventory with an invoice amount of $4,400 was returned for credit. Cost of goods sold for the year was $363,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases?
Read DetailsA company’s year-end inventory on December 31 was $327,000 (at cost) based on a physical count, before any necessary adjustment for the following: Inventory costing $32,000, shipped f.o.b. shipping point from a vendor on December 30, was received at the company’s location on January 5 of the following year. Inventory costing $24,000, shipped f.o.b. destination from a vendor on December 28, was received at the company’s location on January 3 of the following year. Inventory costing $40,000, shipped f.o.b. destination to a customer on December 28, arrived at the customer’s location on January 6 of the following year. Inventory costing $14,000 was being held on consignment by Traynor Company. What amount should the company report as inventory in its December 31 balance sheet?
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