AC 302 CHAPTER 8 QUESTION 2

AC 302 CHAPTER 8 QUESTION 2
Name				Date		
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E8-2 (Inventoriable Costs) In your audit of Garza Company, you find that a physical inventory on 						
December 31, 2012, showed merchandise with a cost of				$441,000 	was on hand at that date. 	
You also discover the following items were all excluded from the					$441,000 	
1. Merchandise of		$61,000 	which is held by Garza on consignment. The consignor is 			
the Bontemps Company.						
2. Merchandise costing 		$33,000 	which was shipped by Garza f.o.b. destination to a 			
customer on December 31, 2012. The customer was expected to receive the merchandise on 						
January 6, 2013.						
3. Merchandise costing		$46,000 	which was shipped by Garza f.o.b. shipping point to a			
customer on December 29, 2012. The customer was scheduled to receive the merchandise on						
January 2, 2013.						
4. Merchandise costing		$73,000 	shipped by a vendor f.o.b. destination on 			
December 30, 2012, and received by Garza on January 4, 2013.						
5. Merchandise costing		$51,000 	shipped by a vendor f.o.b. seller on December 31, 2012			
and received by Garza on January 5, 2013.						
						
Instructions:						
Based on the above information, calculate the amount that should appear on Garza- balance sheet at December 31, 2012, for inventory.						
						
						
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