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Dimitri Company_Inventory _Solution




Question;Dimitri Company, a manufacturer of small tools, provided the following;information from its accounting records for the year ended December 31, 2012.;Inventory at December 31, 2012 (based on physical count of goods;in Dimitri?s plant, at cost, on December 31, 2012);$1,530,800;Accounts payable at December 31, 2012;1,306,600;Net sales (sales less sales returns);8,156,500;Additional information is as follows.;1.;Included in the physical count were tools billed to a customer;f.o.b. shipping point on December 31, 2012. These tools had a cost of;$31,610and were billed and recorded at $40,610. The shipment was on;Dimitri?s loading dock waiting to be picked up by the common carrier.;2.;Goods were in transit from a vendor to Dimitri on December 31, 2012.;The invoice cost was $76,610, and the goods were shipped f.o.b. shipping;point on December 29, 2012.;3.;Work in process inventory costing $30,610was sent to an outside;processor for plating on December 30, 2012.;4.;Tools returned by customers and held pending inspection in the;returned goods area on December 31, 2012, were not included in the physical;count. On January 8, 2013, the tools costing $32,610were inspected and;returned to inventory. Credit memos totaling $47,610were issued to the;customers on the same date.;5.;Tools shipped to a customer f.o.b. destination on December 26, 2012;were in transit at December 31, 2012, and had a cost of $26,610. Upon;notification of receipt by the customer on January 2, 2013, Dimitri issued;a sales invoice for $42,610.;6.;Goods, with an invoice cost of $27,610, received from a vendor at;5:00 p.m. on December 31, 2012, were recorded on a receiving report dated;January 2, 2013. The goods were not included in the physical count, but the;invoice was included in accounts payable at December 31, 2012.;7.;Goods received from a vendor on December 26, 2012, were included in;the physical count. However, the related $56,610vendor invoice was not;included in accounts payable at December 31, 2012, because the accounts;payable copy of the receiving report was lost.;8.;On January 3, 2013, a monthly freight bill in the amount of;$8,610was received. The bill specifically related to merchandise purchased;in December 2012, one-half of which was still in the inventory at December;31, 2012. The freight charges were not included in either the inventory or;in accounts payable at December 31, 2012.;Prepare a schedule of adjustments as of December 31, 2012, to the initial;amounts per Dimitri?s accounting records. (If an amount reduces;the account balance then enter either with a negative sign preceding the;number, e.g. -15,000 or in parenthesis, e.g. (15,000).);Attached File


Paper#37343 | Written in 18-Jul-2015

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