Chapter 7 Homework

Goods out on consignment at another company’s store

Inventory, Balance sheet

Goods sold on an installment basis

COGS, Income statement

Goods purchased f.o.b. shipping point that are in transit at December 31

Inventory Balance Sheet

Goods purchased f.o.b. destination that are in transit at December 31

Not reported

Goods sold with a repurchase agreement

Inventory, Balance sheet

Goods sold with predictable returns

COGS, Income statement

Goods sold f.o.b. shipping point in transit at December 31

COGS, Income statement

Freight charges on goods purchased

Inventory, Balance sheet

Interest costs on routinely manufactured inventories

Interest expense, Income statement

Costs incurred for advertising goods held for resale

Advertising expense, Income statement

Materials on hand not yet placed into production

Inventory, Balance sheet

Office supplies

Office supplies, Balance sheet

Raw materials in production but not fully processed

Inventory, Balance sheet

Factory supplies

Inventory, Balance sheet

Goods held on consignment from another company

Not reported

Costs of units completed but not yet sold by a manufacturing firm

Inventory, Balance sheet

Goods sold f.o.b. destination in transit at December 31

Inventory, Balance sheet

Short-term investments in stocks and bonds for resale

Short-term investment, balance sheet

A special machine fabricated for a customer, finished but not included in inventory by year-end

Include in annual audit

Merchandise received after year-end marked f.o.b. destination

Do not include in annual audit

Packing case marked 'Hold for shipping instructions' dated before year-end

Include in annual audit

Merchandise entered in journal after year-end but shipped f.o.b. supplier's warehouse

Include in annual audit

Merchandise marked 'on consignment' not recorded

Do not include in annual audit