Michael Company shipped merchandise to PJ Sales on December 31, Year 1, terms FOB destination. The merchandise arrives at PJ’s on January 4, Year 2. Which company should include the inventory on its December 31, Year 1 balance sheet?
| Click Here to View All Chapters 5 & 6 Problems at Once | View | ||
| 1 | Consignment Inventory | Easy | |
| 2 |
FOB Destination
You are here. |
Easy | |
| 3 | Inventory Set Aside | Easy | |
| 4 | Loss On Inventory | Easy | |
| 5 | FOB Shipping | Moderate | |
| 6 | FOB Shipping | Moderate | |
| 7 | Inventory Costing | Moderate | |
| 8 | Calculating Operating Income | Hard | |
| 9 | The Effect of Inventory Errors | Hard |
| 1 | The Multistep Income Statement | 12:44 | |
| 2 | Gross Profit vs Net Profit | 6:15 | |
| 3 | Profit Margin | 3:22 | |
| 4 | Net Sales | 10:03 | |
| 5 | COGS and Inventory | 2:57 | |
| 6 | Perpetual vs Periodic | 7:10 | |
| 7 | FOB Shipping? | 8:51 | |
| 8 | Transportation In | 8:41 | |
| 9 | COGS | 6:18 | |
| 10 | Drawbacks to Periodic | 6:07 | |
| 11 | Specific Identification | 2:17 | |
| 12 | Weighted Average | 4:21 | |
| 13 | FIFO and LIFO | 20:17 | |
| 14 | Estimating with Gross Profit | 7:23 |