The following is a bonus problem. It is worth 10 points towards this assignment only.
Alton Company’s inventory balance, based on a physical count of the inventory, was $189,500 on December 31, 2013. The following items were not included in this amount. (Note: In some cases, the amount has to be added to the inventory count and in some cases, it has to be deducted from the given amount).
1. Goods costing $37,000 wereshipped to Alton f.o.b. destination on December 20, 2013, were received on January 4, 2014. The invoice cost was $45,000.
2. Goods costing $18,700 wereshipped to Alton f.o.b. shipping point on December 28, 2013, were received on January 5, 2014. The invoice cost was $22,500.
3. Goods costing $42,000 were shipped from Alton to Darville Corp f.o.b. destination on December 27, 2013 and were received by Darville on December 31st, 2013. The sales price was $55,000.
4. On December 24, 2013Lupo Inc. sold goods with a cost of $38,000 to Alton Corp for $50,000, f.o.b. shipping point. Rapid Parcel picked up the goods on December 30, 2013. Lupo billed Alton on December 31, 2013 and Alton received the goods on January 2, 2014.,
5. Goods costing $20,000 were shipped from Alton to Cuoco Corp f.o.b. destination on December 26, 2013. The carrier picked up the goods on December 28th, 2013. Alton billed Cuoco for $24,000 on December 31standthe goods were received by Cuoco on January 2nd, 2014.
6. Alton had goods with a cost of $25,000 and a selling price of $32,000 on consignment at Laci’s Consignment. These goods were not included in the physical count of inventory.
7. Goods costing $30,000 with a selling price of $42,000 were shipped to Fritz Corp f.o.b. shipping point on December 31, 2013. Fritz received the goods on January 5, 2014.
8. Alton sold $65,000 of goods to Corp f.o.b. shipping point on December 27, 2013. Alton billed Gatsby Corp for the goods on December 31, 2013. The goods shipped on January 3 and were received by Gatsby Corp on January 8th.
9. On December 20, 2013, Alton received a bill in the amount of $4,500 for shipping charges from its suppliers. It also had to pay $800 for insurance on the goods, $700 to unload the goods, $3,800 for assembling and painting of some of the items, $6,200 in finance charges and $550 in customs duties for goods shipped from overseas. Alton paid these bills on December 30, 2013.
10. On December 28, 2013 paid $970 to Expedited Parcel for goods shipped to Alton’scustomers.
For each item, determine what amount, (if any) should be added to or deducted from the inventory account. Please number each item and state the amount next to its respective number). If an item does not need to be adjusted to the inventory account, explain why not. (For example, some items may already be included in the inventory account and some items may not be inventoriable costs).