Accounting Homwork Questions

User Generated

WlbgvIrezn

Business Finance

Description

On 1/1/18 Ginger Inc purchased 100 cans of cat food from Ollie Beef Inc at a cost of $3,000. The terms of the sale were FOB shipping point and the Freight-in to Ginger Inc was $400. The insurance cost during the transit of the cans was $100 and then Ginger Inc had to pay an employee $1000 to bring the cans to a saleable condition. What amount should Ginger Inc record in its Inventory account as the cost of the cans. Please show work

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Thank you for the opportunity to help you with your question!

Cost of Cans = Purchased price + Freight in + Insurance cost + Cost of making saleable cans

Cost of cans = $3,000 + $400 + $100 + $1000 = $4,500

$4500 should be recorded in Inventory account as the cost of can.


Please let me know if you need any clarification. I'm always happy to answer your questions.


Anonymous
Excellent! Definitely coming back for more study materials.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags