Business, 29.10.2019 22:31 luckyalita

Base industries lists inventory at $87,500 on the balance sheet. included in this amount is the following: goods that were purchased fob shipping point that were in transit on the balance sheet date: $8,850 good held on consignment for western company: $7,525 goods that were purchased fob destination that were in transit on the balance sheet date: $1,045 what is the correct balance for base industries’ inventory account?

Answers: 3

Show answers

Answers

Answer from: geminigirl077

The answer is: $78,930

Explanation:

The merchandise inventory account included a couple of records that are incorrect:

Goods held on consignment belong to Western Company and shouldn't be included in the balance sheet (-$7,525).Goods that were purchased FOB destination will only belong to Base Industries when they are delivered. As long as they are in transit, the title of the goods belongs to the seller, so they also should be excluded form the balance sheet (-$1,045).

The correct balance of Merchandise Inventory account should be:

$87,500 - $7,525 - $1,045 = $78,930

Answer from: peno211

The correct balance for Base Industries’ inventory account is $78,930

The correct computation for base industries account should be as follows:

Ending inventory balance - FOB destination goods purchased - goods being held on consignment

Therefore we have:

$87,500 - $7,525 - $1,045

= $78,930

Further Explanation

Some records should not be included in the merchandise inventory account.

The goods held on consignment for the western company should not be included in the inventory account because the goods are yet to be delivered to base industries, which means that it is owned by the western company. Therefore, the balance sheet is -$7,525Also, the goods that were purchased FOB destination were still in transits can be claimed yet by Base industries, that is, since Base industry is yet to receive the goods, then the goods are still owned by the seller and should not be included in the balance sheet. Therefore, the balance is - -$1,045

Thus, the correct balance for Base Industries’ inventory account is $78,930

Inventory accounts refer to the aspect of accounting which involves valuing and accounting for items that a company’s plan to sell for profit.

A company’s inventory deals with the goods that are involved in three stages of production and these include

Raw goods or production materialsIn-progress goodsFinished goods that can put out for sale

LEARN MORE:

On December 31 of the current year, Plunkett Company reported an ending inventory balance of $215,500 Coronado Industries took a physical inventory on December 31 and determined that goods costing $180,500 were on hand. Not included in the physical

KEYWORDS:

balance sheetlist inventorybase industriesFOB shipping pointinventory account

Answer from: Quest

well based on 99% of parents have dont something wrong to there kids mabey even stole money from you so based on maney inccedent i would choose guilt

Answer from: Quest

The answer is c hope this

Another question on Business

Business, 22.06.2019 02:00

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Answers: 2

Answer

Business, 22.06.2019 04:10

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Answers: 2

Answer

Business, 22.06.2019 17:30

Jeanie had always been interested in how individuals and businesses effectively allocate their resources in order to accomplish personal and organizational goals. that’s why she majored in economics and took on an entry-level position at an accounting firm. she is very interested in further advancing her career by looking into a specialization that builds upon her academic background, and her interest in deepening her understanding of how companies adjust their operating results to incorporate the economic impacts of their practices on internal and external stakeholders. which specialization could jeanie follow to get the best of both worlds? jeanie should chose to get the best of both worlds.

Answers: 2

Answer

Business, 22.06.2019 17:40

Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc

Answers: 2

Answer

You know the right answer?

Base industries lists inventory at $87,500 on the balance sheet. included in this amount is the foll...

Questions