1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rusak2 [61]
3 years ago
6

Base Industries lists inventory at $87,500 on the balance sheet. Included in this amount is the following: Goods that were purch

ased FOB shipping point that were in transit on the balance sheet date: $8,850 Good held on consignment for Western Company: $7,525 Goods that were purchased FOB destination that were in transit on the balance sheet date: $1,045 What is the correct balance for Base Industries’ inventory account?
Business
2 answers:
zalisa [80]3 years ago
7 0

The correct balance for Base Industries’ inventory account is $78,930

The correct computation for base industries account should be as follows:

Ending inventory balance - FOB destination goods purchased - goods being held on consignment

Therefore we have:

$87,500 - $7,525 - $1,045

= $78,930

<h2>Further Explanation</h2>

Some records should not be included in the merchandise inventory account.

  • The goods held on consignment for the western company should not be included in the inventory account because the goods are yet to be delivered to base industries, which means that it is owned by the western company. Therefore, the balance sheet is -$7,525
  • Also, the goods that were purchased FOB destination were still in transits can be claimed yet by Base industries, that is, since Base industry is yet to receive the goods, then the goods are still owned by the seller and should not be included in the balance sheet. Therefore, the balance is - -$1,045

Thus, the correct balance for Base Industries’ inventory account is $78,930

Inventory accounts refer to the aspect of accounting which involves valuing and accounting for items that a company’s plan to sell for profit.

A company’s inventory deals with the goods that are involved in three stages of production and these include

  • Raw goods or production materials
  • In-progress goods
  • Finished goods that can put out for sale

LEARN MORE:

  • On December 31 of the current year, Plunkett Company reported an ending inventory balance of $215,500 brainly.com/question/13221593
  • Coronado Industries took a physical inventory on December 31 and determined that goods costing $180,500 were on hand. Not included in the physical brainly.com/question/13838503

KEYWORDS:

  • balance sheet
  • list inventory
  • base industries
  • FOB shipping point
  • inventory account
marishachu [46]3 years ago
6 0

Answer:

The answer is: $78,930

Explanation:

The merchandise inventory account included a couple of records that are incorrect:

  1. Goods held on consignment belong to Western Company and shouldn't be included in the balance sheet (-$7,525).
  2. Goods that were purchased FOB destination will only belong to Base Industries when they are delivered. As long as they are in transit, the title of the goods belongs to the seller, so they also should be excluded form the balance sheet (-$1,045).

The correct balance of Merchandise Inventory account should be:

$87,500 - $7,525 - $1,045 = $78,930

You might be interested in
Oann and mark, a white american couple, are planning to purchase a home in the next year or so. they approve of residential inte
BaLLatris [955]
Hmmm not sure exactly what you are asking the wording is strange but this seems to be showing Racism towards blacks.
8 0
3 years ago
Which market structure is most prevalent in reality? Explain.​
kaheart [24]

Answer:

Perfect competition is an ideal type of market structure where all producers and consumers have full and symmetric information, no transaction costs, where there are a large number of producers and consumers competing with one another. Perfect competition is theoretically the opposite of a monopolistic market.

Explanation:

Pls mark me the Brainliest..pls..

5 0
2 years ago
Read 2 more answers
Which of the following statements regarding conducting marketing research in a foreign country is​ correct? A. Good secondary da
diamong [38]

Answer: B. Consumers in foreign markets generally enjoy participating in marketing research.

Explanation: Consumers in foreign countries are accessible because there are currently many ways to address them, for example a company that sells clothes that wants to sell clothes in other markets and need to do a market research on a specific product, can use the large companies such as social networks or e-mail marketing to be able to offer the products or obtain the result of the research they are conducting.

7 0
3 years ago
On January 1, 2017, Sheridan Company had a balance of $417,000 of goodwill on its balance sheet that resulted from the purchase
Thepotemich [5.8K]

Answer:

patent      301,350 debit

       cash                 301,350 credit

franchise 633,600 debit

        cash               633,600 credit

development expense   189,000 debit

         cash                                    189,000 credit

year-end adjustment:

amortization expense   50,225 debit

         patent                                  50,225 credit

amortization expense   31,680‬ debit

         patent                                  31,680‬ credit

Explanation:

The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.

They will be adjusted at year-end for amortization:

301,350 / 6 = 50,225 amortization on patent

633,600 / 10 = 63,360 amortization on franchise

As it was concede on July 1st then, we will do half-year

63,360 / 2 = 31,680‬

The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.

8 0
3 years ago
Which of the following are criteria for determining whether to record an asset as a fixed asset? a.must be short-lived and tangi
Brut [27]

Answer:

The correct answer is letter "D": must be long-lived and used by the company in its normal operations.

Explanation:

Fixed assets are tangible resources used by a corporation to produce profits. To qualify as a fixed asset, the item can not be consumed or sold in less than one year and be part of the daily operations of the business. Fixed assets are listed on the balance sheet of the company and are subject to depreciation.

Examples of fixed assets include <em>buildings, factories, leasehold improvements, computers, electronic hardware, furniture, automobiles, </em>and <em>construction equipment.</em>

5 0
3 years ago
Other questions:
  • Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep
    9·1 answer
  • Which segmentation method is most closely related to providing value by satisfying customers' needs and wants?
    8·1 answer
  • The idea that individuals and organizations are accountable to a larger society is known as:_________
    12·1 answer
  • Services are _____ in that they cannot be stored for use in the future.
    10·1 answer
  • Interstate Manufacturing is considering either replacing one of its old machines with a new machine or having the old machine ov
    11·1 answer
  • Blue Spruce Manufacturing has an annual capacity of 80,200 units per year. Currently, the company is making and selling 78,000 u
    13·1 answer
  • Two managers in the research and development department of a company disagree on whether their organization should outsource dev
    13·1 answer
  • One of the elements that many believe distinguishes a profession from other occupations is the acceptance of responsibility by i
    9·1 answer
  • A buyer made an earnest money offer to purchase property, and the broker placed the funds in his trust account. After the seller
    5·1 answer
  • What is a major implication for HRM that has resulted from technical advancement? *
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!