Question Details

Godchaux Inc. took a physical inventory 



1.	The term "FOB" denotes
a.	free on board.
b.	freight on board.
c.	free only (to) buyer.
d.	freight charge on buyer.


	2.	As a result of a thorough physical inventory, Hastings Company determined that it had inventory worth $540,000 at December 31, 2011. This count did not take into consideration the following facts: Carlin Consignment store currently has goods worth $104,000 on its sales floor that belong to Hastings but are being sold on consignment by Carlin. The selling price of these goods is $150,000. Hastings purchased $40,000 of goods that were shipped on December 27 FOB destination, that will be received by Hastings on January 3. Determine the correct amount of inventory that Hastings should report.
a.	$580,000.
b.	$684,000.
c.	$644,000.
d.	$690,000.


	3.	Bellingham Inc. took a physical inventory at the end of the year and calculated that £1,650,000 of goods were on hand. Bellingham determined that £25,000 of goods were in transit. The goods were shipped f.o.b. shipping point and were received two days after the inventory count. The company also had £275,000 of goods out on consignment. What amount should Bellingham report for inventory on its statement of financial position?
a.	£1,350,000.
b.	£1,650,000.
c.	£1,925,000.
d.	£1,950,000.


	4.	Godchaux Inc. took a physical inventory at December 31, 2010 and determined that €275,000 of goods were on hand. In addition, the following items were not included in the physical count: (1) €60,000 of goods were in transit, shipped f.o.b. destination (goods were received by Godchaux three days on January,3 2011) and (2) the company shipped f.o.b. destination €25,000 worth of inventory on December 29. The goods arrived at the buyer- place of business on January 2, 2011. What amount should Godchaux report as inventory at the end of 2010?
a.	€275,000.
b.	€335,000.
c.	€300,000.
d.	€360,000.


5.	Ching Inc. took a physical inventory at December 31, 2010 and determined that ¥4,270,000 of goods were on hand. On December 29, the company had ordered ¥1,010,000 of goods which were in transit. The goods were shipped f.o.b. shipping point and arrived on January 2, 2011. The company had also sold and shipped f.o.b. destination ¥950,000 worth of inventory on December 28. The goods arrived at the buyer- place of business on January 4, 2011. Ching- December 31, 2010 statement of financial position will report inventory of
a.	¥3,260,000.
b.	¥4,270,000.
c.	¥5,280,000.
d.	¥6,230,000.





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