Acc422:1) Prepare a schedule in good form computing the correct ending inventory value for HSV…


Question Description:

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Problem 4: Information relating to theHSV Company’s inventory as of December 31, 2011 includes: 1. HSV Company uses the periodic inventory method. 2. On December 31, a physical count of inventory indicates that$693,300of inventory was on hand. 3. HSV Company shipped$58,500of merchandise to theUYN Company on December 28, FOB shipping point. UYN Company actually received the shipment on January 4. 4. HSV Company ordered$38,100of merchandise from theSQQ Company on December 29, FOB destination. SQQ Company shipped the merchandise on December 31 andHSV Company received the merchandise on January 2. 5. HSV Company ordered$58,300of merchandise from theBZT Company on December 31, FOB shipping point. PDQ shipped the merchandise on January 2 andHSV Company received the shipping on January 5. 6. HSV Company shipped$27,500of merchandise to theFBQ Company on December 27, FOB destination. FBQ Company received the shipment on January 3. 7. HSV Company ordered$43,100of merchandise from theTFJ Company on December 31, FOB shipping point. TFJ Company shipped the merchandise on the same day andHSV Company received the shipment on January 2. 8. HSV Company’s inventory count included$12,200in merchandise it received from theUEM Company with the agreement thatHSV Company would try to sell it, keep 20% of the sales price, and remit the remainder theUEM Company. If the merchandise does not sell it will be returned toUEM Company. 9. HSV Company shipped$21,900of merchandise on December 15 to theSQQ Company. Prior to the shipment,HSV Company agreed to repurchase the inventory on January 15 for$21,900plus7.1% and to pay all costs of shipping both ways. Instructions: 1) Prepare a schedule in good form computing the correct ending inventory value forHSV Company.

Answer

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