On December 31 of the current year, Plunkett Company reported an ending inventory balance of $213,500. The following additional information is also available: ? Plunkett sold and shipped goods costing $37,700 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $213,500. ? Plunkett purchased goods costing $43,700 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $213,500. ? Plunkett's ending inventory balance of $213,500 included $14,700 of goods being held on consignment from Carole
Company. (Plunkett Company is the consignee.) ? Plunkett's ending inventory balance of $213,500 did not include goods costing $94,700 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is:
A. $169,800
B. $207,500
C. $155,100
D. $198,800
E. $192,800
Answer: C
You might also like to view...
After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Yang, $20,000; Wolfe, $30,000; Stamatis, $45,000 . Partners share profits and losses as follows: Yang, 20%; Wolfe, 30%; and Stamatis, 50%. If Yang purchased Stamatis's interest
in the partnership for $40,000 cash, the amount entered in Yang's capital account is a a. $5,000 debit. b. $40,000 debit. c. $40,000 credit. d. $45,000 credit.
When the Federal Reserve makes a loan to a bank at the discount window,
A. the Fed requires that the loan be repaid the next day. B. the interest rate charged by the Fed is equal to the federal funds rate. C. the loan is backed by collateral. D. the Fed requires the bank to buy additional deposit insurance.
Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000. Fixed factory overhead cost $105,000 Fixed selling and administrative costs 35,000 Variable direct materials cost per unit 4.34 Variable direct
labor cost per unit 5.18 Variable factory overhead cost per unit .98 Variable selling and administrative cost per unit .70 The variable cost per unit for the production and sale of the company's product is: A) $14.00 B) $12.60 C) $ 9.80 D) $11.20
A lessor retains title to the goods and has the right to recover possession of them upon default by the lessee
a. True b. False Indicate whether the statement is true or false