Calculate the correct inventory balance at september thirty

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Reference no: EM133921858

Problem

Woodland Printers uses the perpetual inventory system. On September 30, 2028, the company's year end, a physical count was taken of the inventory on hand. The cost of the inventory on hand was determined to be $325,400. However, the accountant has questions about the following items:

A. On the store shelves, the staff counted seven paintings held by Woodland on consignment from a local artist. The paintings are included on the inventory count at a cost of $4,200.

B. On September 30, a shipment of goods was sent to a customer, FOB destination. The cost of the goods shipped is $7,800, and freight, which is to be paid by Woodland, will cost $200. These items are not included in the inventory count. Delivery is expected to take three days.

C. On October 2, a freight company delivered goods that cost $10,000 to Woodland's warehouse. The goods had been shipped by the vendor on September 29, FOB shipping point. Freight on this shipment will amount to $500 and will be paid by the appropriate party. The goods are not included on the inventory count. Get the instant assignment help.

D. On September 30, a loyal customer visited Woodland's retail shop and asked that certain items be set aside for him. The goods set aside have a cost of $1,300. The customer intends to let Woodland know no later than October 2 whether or not he wishes to finalize the sale and have the goods shipped to his home. The freight will cost $50 and will be paid by Woodland. The salesperson was fairly sure the customer will take the items, and so Woodland prepared the sales invoice on September 30. The items are not included on the inventory count.

E. Residing in Woodland's warehouse is merchandise costing $5,000 that was purchased in September and found to be defective. Woodland's purchasing manager has arranged with the vendor to accept return of the goods and has packaged them for return shipment. The vendor processed a credit to Woodland's account on September 28, and has arranged to have the goods picked up on October 1. The items are included on the inventory count.

Task

Calculate the correct inventory balance at September 30, 2028. For each of the above items, explain the basis of your treatment of the item.

Reference no: EM133921858

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