ACC557 Week 4 Chapter 6 E6 1 E6 10 E6 14 P6 3A

EXERCISE 6-1

The correct inventory amount $351000

 

Ending inventory—physical count.................................................     $297,000

    1.    No effect—title passes to purchaser upon shipment

           when terms are FOB shipping point...................................                   0

    2.    No effect—title does not transfer to Alou until

           goods are received.................................................................                   0

    3.    Add to inventory:  Title passed to Alou when goods

           were shipped...........................................................................          19,000

    4.    Add to inventory:  Title remains with Alou until

           purchaser receives goods....................................................          35,000

    5.    No effect – title passes to purchaser upon shipment
when terms are FOB shipping point, ............................................               0

Correct inventory................................................................................      $351,000

 

EXERCISE 6-10

The ending inventory $26900

 

 

 

 

 

Cost

 

 

 

Market

 

Lower
-of-Cost-
or-Market:

Cameras

 

$  6,800

 

$  7,000

 

$  6,800

DVD players

 

11,250

 

10,350

 

10,350

Ipods

 

  10,000

 

    9,750

 

    9,750

       Total inventory

 

$28,050

 

$27,100

 

$26,900

 

EXERCISE 6-14

 

(a)

 

Silver Company

 

Gold Company

ACC557 Week 4 Chapter 6 (E6-1 E6-10 E6-14 P6-3A)

EXERCISE 6-1 The correct inventory amount $351000 Ending inventory—physical count $297,000 1. No effect—title passes to purchaser upon shipment when terms are FOB shipping point 0 2. No effect—title does ...

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