Forever Young Game Stores (FYG)has Taken a Physical Count of Its

question 181

Essay

Forever Young Game Stores (FYG)has taken a physical count of its inventory at March 31,its fiscal year-end.After reviewing the accounting records and documentation,the following items have been discovered:
(a)An invoice from Shreck Co.indicates that $30,000 of games were shipped to FYG on March 27,terms FOB shipping point.The games and invoice did not arrive at FYG until April 2 and were not included in the physical count.
(b)An invoice from Gamers,Inc.indicates that $8,000 of games were shipped to FYG on March 29,terms FOB destination.The games and invoice did not arrive at FYG until April 2 and were not included in the physical count.
The physical count and cost assignment on March 31 prior to these two items is $440,000.The cost of goods sold for FYG is $2,100,000.
1.Calculate the amount that should be reported as ending inventory for FYG.
2.Calculate the days' sales in inventory before and after the appropriate adjustments for inventory.

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Definitions:

Perception

The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

Bottom-up Processing

An approach to information processing that starts with details or sensory data and builds up to a comprehensive perception.

Sensory Receptors

Specialized cells or nerve endings that respond to environmental stimuli, such as light, sound, touch, or chemicals, and convert them into neural impulses.

Umami

One of the five basic tastes, characterized by a savory or meaty flavor, often associated with glutamates.