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Q: Inventory Inclusions and Costs of Goods ( No Answer,   0 Comments )
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 Subject: Inventory Inclusions and Costs of Goods Category: Business and Money > Accounting Asked by: ydorb-ga List Price: \$25.00 Posted: 09 Jul 2006 08:29 PDT Expires: 09 Jul 2006 20:41 PDT Question ID: 744664
 ```I am trying to compute the inventory balance for the December 31, 2005, financial statements. There is a initial balance of \$52,600 There is also the following factors that might affect the balance. - A shipment of goods that cost \$3,000 was received on December 28, 2005. It was properly recorded as a purchase in 2005 but not counted with the ending inventory. - Another shipment of goods (FOB destination) was received on January 2, 2006, and cost \$800. It was properly recorded as a purchase in 2006 but was counted with 2005?s ending inventory. - A \$2,800 shipment of goods to a customer on January 3 was recorded as a sale in 2006 but was not included in the December 31, 2005, ending inventory balance. The goods cost \$2,000. - The company had goods costing \$6,000 on consignment with a customer, and \$5,000 of merchandise was on consignment from a vendor. Neither amount was included in the \$52,600 figure. - This merchandise that was in transit on December 31, 2005, & was recorded as purchases and sales in 2005 but not included in the December 31 inventory: 1. Ordered by me \$1,800, FOB destination 2. Ordered by me \$600, FOB shipping point 3. Sold by me cost \$4,000, FOB shipping point 4. Sold by me cost \$4,600, FOB destination What I need to calculate: - Correct amount of ending inventory at December 31, 2005. - Cost of goods sold in 2005, Assuming net purchases (before any adjustment) totaled \$86,400 and beginning inventory (January 1, 2005) totaled \$31,600.```