Chapter 8 Problems

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Chapter 8: E 8-3, E 8-14, E 8-16, P 8-4 Chapter 9: E 9-1, E 9-12, E 9-19, P 9-12 E8-3 (Inventoriable Costs) Assume that in an annual audit of Webber Inc. at December 31, 2012, you find the following transactions near the closing date. Intermediate Accounting, 14th Edition Page 49 of 84 . 1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2012. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2013. The machine should be included in the finished goods inventory since it moves to the customer. . 2. Merchandise costing $2,800 was received on January 3, 2013, and the related purchase invoice recorded January 5. The invoice showed the shipment was made on December 29, 2012, f.o.b. destination. The merchandise need not be recorded in the inventory because it was received by the customer as f.o.b. on Jan 3rd 2012 3. A packing case containing a product costing $3,400 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked “Hold for shipping instructions.” Your investigation revealed that the customer’s order was dated December 18, 2012, but that the case was shipped and the customer billed on January 10, 2013. The product was a stock item of your client. The product of 3400 should be included in the inventory because it belonged to Webber on Dec 31st 2012 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.” The merchandise of $720 does not need to be included in the inventory because it was

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