Accounting for Inventory & Cost of Goods Sold

May 21st, 2016
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Exercise 6-1 Tri-State Bank and Trust is considering giving Josef Company a loan. Exercise 6-7 Lisa Company had 241 units in beginning inventory at a total cost of $28,438 Brief Exercise 5-1 Presented below are the components in Gates Company’s income statement. Exercise 5-14 Financial information is presented below for three different companies. Exercise 4-8 Plevin Company ended its fiscal year on July 31, 2014.

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Exercise 6-1Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing so,management decides that further discussions with Josefs accountant may be desirable. Onearea of particular concern is the inventory account, which has a year-end balance of300$300,170. Discussions with the accountant reveal the following.1. Josef sold goods costing $32,620 to Sorci Company, FOB shipping point, on December28. The goods are not expected to arrive at Sorci until January 12. The goods were notincluded in the physical inventory because they were not in the warehouse.2. The physical count of the inventory did not include goods costing $90,030 that wereshipped to Josef FOB destination on December 27 and were still in transit at year-end.3. Josef received goods costing $23,150 on January 2. The goods were shipped FOBshipping point on December 26 by Solita Co. The goods were not included in thephysical count.4. Josef sold goods costing $47,760 to Natali Co., FOB destination, on December 30. Thegoods were received at Natali on January 8. They were not included in Josef's physicalinventory.5. Josef received goods costing $46,410 on January 2 that were shipped FOB destinationon December 29. The shipment was a rush order that was supposed to arrive December31. This purchase was included in the ending inventory of $300,170.Determine the correct inventory amount on December 31.$The correct inventory amountExercise 6-7Lisa Company had 241 units in begi

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