User Account

All Pages

One area of particular concern is the inventory account

Assignment Help Financial Accounting
Reference no: EM131287806

Umatilla Bank and Trust is considering giving Shamrock, Inc. a loan. Before doing so, it decides that further discussions with Shamrock, Inc.’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $282,890. Discussions with the accountant reveal the following. 1. Shamrock, Inc. sold goods costing $50,770 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $103,820 that were shipped to Shamrock, Inc. FOB destination on December 27 and were still in transit at year-end. 3. Shamrock, Inc. received goods costing $26,950 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count. 4. Shamrock, Inc. sold goods costing $47,050 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Shamrock, Inc. physical inventory. 5. Shamrock, Inc. received goods costing $41,500 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $282,890. Determine the correct inventory amount on December 31.

Reference no: EM131287806

Questions Cloud

Income tax deduction for distributions to beneficiaries : Tom is the trustee of the Generous Trust. The trust agreement directs the trustee to pay all net fiduciary accounting at least annually to Ms. Behaven. During 2013 the trust earned $10,000 of net fiduciary accounting income, consisting of taxable bon..
Necessary to account for private placement and the call : Y Ltd is listed on the Australian Securities Exchange. On 1 January 2015, Y Ltd invited Madi Ltd to purchase 700 000 shares at $2.50 per share. At the time of accepting the offer, Madi Ltd only had cash resources available of $900 000. Provide the jo..
Analyze the various methods of depreciation : Analyze the various methods of depreciation and provide an opinion on which method is better for a company to use. Also, compare and contrast the depreciation methods. Discuss the advantages and disadvantages of each method. How does each method affe..
Waterway industries reported cost of goods sold : Waterway Industries reported cost of goods sold as follows. 2017 2016 Beginning inventory $ 31,730 $ 21,270 Cost of goods purchased 164,530 169,130 Cost of goods available for sale 196,260 190,400 Less: 2016 ending inventory was overstated by $2,100...
One area of particular concern is the inventory account : Umatilla Bank and Trust is considering giving Shamrock, Inc. a loan. Before doing so, it decides that further discussions with Shamrock, Inc.’s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end..
Calculate the days in inventory-inventory turnover : Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $153,244; beginning inventory $111,964; cost of goods sold $324,929 and sales revenue $803,091. ..
What are the key estimates used in capm : To CAPM or not to CAPM – that is the question. CAPM is a valuable tool that often comes under fire for all the estimates it relies upon. What are the key estimates used in CAPM? Why is this measure so harshly criticized? Do you agree with the critics..
Compute the cost of ending inventory under fifo method : In its first month of operations, Marigold Corp. made three purchases of merchandise in the following sequence: (1) 240 units at $5, (2) 340 units at $7, and (3) 440 units at $8. Assuming there are 140 units on hand at the end of the period, compute ..
Trust agreement to distribute all current income : Mary is the sole beneficiary of a trust to whom the trustee is required by the terms of the trust agreement to distribute all current income. During the taxable year the trust has $10,000 of DNI. The trustee makes no distributions to Mary.

Reviews

Write a Review

Financial Accounting Questions & Answers

  The first-in-first-out method of inventory costing is used

Department G had 3,842 units, one-third completed at the beginning of the period, 12,391 units were completed during the period, 1,623 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the ..

  Compute amount and percentage changes for income statements

Vision, Inc.'s comparative income  statements follow. Compute the amount and percentage changes for the income statements, and comment on the changes from 2013 to 2014.

  Determine the proper amount of net income

During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2018, you come across several items needing further consideration. Currently, net income is $100,000. Determine the proper amount ..

  Salvage value-using double the straight-line rate

Hinshaw Company purchased a new machine on October 1, 2014, at a cost of $85,120. The company estimated that the machine has a salvage value of $7,490. The machine is expected to be used for 62,110 working hours during its 8-year life. Declining-bala..

  Profit for both years using the variable costing method

The following information is available for Skipper Pools, a manufacturer of above-ground swimming pool kits: In its first year of operation, the company produced 12,290 units but was able to sell only 10,300 units. Find the profit for both years usin..

  What is the consolidated cost of goods sold in 2013

What is the consolidated cost of goods sold in 2013?

  1 your company purchases a different business at a bargain

1. your company purchases a different business at a bargain purchase properly accounted for as a business combination.

  Listed below are five procedures followed by the beat

listed below are five procedures followed by the beat company.1.several individuals operate the cash register using the

  Determine when breakeven occurs

You want to start a restaurant business. Your initial investment is $10,000, borrowed at 4% annual rate. Your cash flow for (at the end of) years 1,2,3,4 and 5 are respectively $2400, $3100, $2100, $4300 and $5000. Using Present worth analysis, deter..

  Beginning balances in the ledger accounts

Using T accounts enter the beginning balances in the ledger accounts and post the April transactions and Tot. trial balance $8,254. Gross profit $463

  Method of creating the profit-and-loss statement

What is the impact of this method of creating the profit-and-loss statement on management decision making - what is the impact of this method of creating the profit-and-loss statement on business performance

  Assumed conversion of stock options

When computing diluted EPS, do not weight any assumed conversion of stock options, convertible preferred stock, and convertible bonds for stock dividends declared during the year. In other words, use the same format reflected in the solutions to the ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd