Solved

Hampton Co

Question 182

Matching

Hampton Co. took a physical count of its inventory on December 31. In addition, it had to decide whether or not the following items should be added to this count.
Answer "True" or "False" to indicate which items should and should not be added to the December 31 inventory count.

Premises:
Merchandise shipped to a customer FOB destination was picked up by the freight company on December 28 but had not arrived at its destination as of December 31.
Hampton Co. sent merchandise on a consignment basis on December 31 just prior to the physical count.
Inventory on hand had been sold earlier in the year but had been returned by customers for various warranty repairs.
On December 27, Hampton Co. ordered merchandise on FOB shipping point terms. The merchandise was shipped on December 29 but had not been received by December 31.
Merchandise sold FOB shipping point on December 31 was picked up by the freight company just before closing on December 31.
On December 22, Hampton Co. ordered merchandise on FOB destination terms. The merchandise was shipped by the supplier on December 30 but had not been received by December 31.

Responses:
False
True

Correct Answer:

Merchandise shipped to a customer FOB destination was picked up by the freight company on December 28 but had not arrived at its destination as of December 31.
Hampton Co. sent merchandise on a consignment basis on December 31 just prior to the physical count.
Inventory on hand had been sold earlier in the year but had been returned by customers for various warranty repairs.
On December 27, Hampton Co. ordered merchandise on FOB shipping point terms. The merchandise was shipped on December 29 but had not been received by December 31.
Merchandise sold FOB shipping point on December 31 was picked up by the freight company just before closing on December 31.
On December 22, Hampton Co. ordered merchandise on FOB destination terms. The merchandise was shipped by the supplier on December 30 but had not been received by December 31.

Related Questions

Q82: In valuing merchandise for inventory purposes, net

Q137: Average inventory is computed by adding the

Q177: If Addison uses FIFO, the September 30

Q178: Basic inventory data for April 30

Q179: Brutus Corporation, a newly formed corporation, has

Q181: The method of estimating inventory that uses

Q183: Beginning inventory, purchases, and sales data for

Q184: For the year ended December 31, Depot

Q185: Fill in the missing amounts from the

Q186: Match each situation to its impact on