For Each of the Following, Calculate the Cost of Inventory

question 186

Essay

For each of the following, calculate the cost of inventory reported on the balance sheet.
a The total merchandise inventory counted at the end of the year was $63,000. Purchases for
$6,000 are in transit under FOB shipping point terms.
b The total merchandise inventory counted at the end of the year was $75,000. Purchases for $5,000 are in transit under FOB destination terms.

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Definitions:

Microspores

Small spores produced by seed plants and some ferns during the process of meiosis, which develop into male gametophytes.

Megaspores

Large spores produced by some plants that develop into female gametophytes, part of the reproductive cycle.

Microphylls

Simple, small leaves with a single vein, found on some plant species including lycophytes.

Stem Branches

Extensions or subdivisions arising from the main body of a plant's stem, which support leaves, flowers, and fruits.