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customer billed on January 10, 2013. The product was a stock item of
your client.
4.Merchandise costing $720 was received on December 28, 2012, and
the invoice was not recorded. You located it in the hands of the
purchasing agent; it was marked ―on consignment.‖
5.Merchandise received on January 6, 2013, costing $680 was entered
in the purchases journal on January 7, 2013. The invoice showed
shipment was made f.o.b. supplier’s warehouse on December 31,
2012. Because it was not on hand at December 31, it was not included
in inventory.
Assuming that each of the amounts is material, state whether the
merchandise should be included in the client’s inventory, and give
your reason for your decision on each item.
P8-4 Hull Company’s record of transactions concerning part X for the
month of April was as follows:
E9-1 The inventory of Oheto Company on December 31, 2013,
consists of the following items.
Part No. 121 is obsolete and has a realizable value of $0.50 each as
scrap.
(a)Determine the inventory by the lower-of-cost-or-market method,
applying the method to the total of the inventory.
(b)Determine the inventory as of December 31, 2013, by the lower-
of-cost-or-market method, applying this method directly to each item.
P9-12 Late in 2009, Joan Seceda and four other investors took the
chain of Becker Department Stores private, and the company has just
completed its third year of operations under the ownership of the
investment group. Andrea Selig, controller of Becker Department
Stores, is in the process of preparing the year-end financial
statements. Based on the preliminary financial statements, Seceda has
expressed concern over inventory shortages, and she has asked Selig
to determine whether an abnormal amount of theft and breakage has