Inventory cut-off.
Vogts Company sells TVs. The perpetual inventory was stated as $38,500 on the books at December 31, 2014. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows.
1. TVs shipped to a customer January 2, 2015, costing $5,000 were included in inventory at December 31, 2014. The sale was recorded in 2015.
2. TVs costing $12,000 received December 30, 2014, were recorded as received on January 2, 2015.
3. TVs received during 2014 costing $4,600 were recorded twice in the inventory account.
4. TVs shipped to a customer December 28, 2014, f.o.b. shipping point, which cost $9,000, were not received by the customer until January, 2015. The TVs were included in the ending inventory.
5. TVs on hand that cost $6,100 were never recorded on the books.

Instructions
Compute the correct inventory at December 31, 2014."

Question

Inventory cut-off.
Vogts Company sells TVs. The perpetual inventory was stated as $38,500 on the books at December 31, 2014. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows.
1. TVs shipped to a customer January 2, 2015, costing $5,000 were included in inventory at December 31, 2014. The sale was recorded in 2015.
2. TVs costing $12,000 received December 30, 2014, were recorded as received on January 2, 2015.
3. TVs received during 2014 costing $4,600 were recorded twice in the inventory account.
4. TVs shipped to a customer December 28, 2014, f.o.b. shipping point, which cost $9,000, were not received by the customer until January, 2015. The TVs were included in the ending inventory.
5. TVs on hand that cost $6,100 were never recorded on the books.

Instructions
Compute the correct inventory at December 31, 2014."

Quizplus · Accepted Answer

The Answer of Inventory cut-off.
Vogts Company sells TVs. The perpetual inventory was stated as $38,500 on the books at December 31, 2014. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows.
1. TVs shipped to a customer January 2, 2015, costing $5,000 were included in inventory at December 31, 2014. The sale was recorded in 2015.
2. TVs costing $12,000 received December 30, 2014, were recorded as received on January 2, 2015.
3. TVs received during 2014 costing $4,600 were recorded twice in the inventory account.
4. TVs shipped to a customer December 28, 2014, f.o.b. shipping point, which cost $9,000, were not received by the customer until January, 2015. The TVs were included in the ending inventory.
5. TVs on hand that cost $6,100 were never recorded on the books.

Instructions
Compute the correct inventory at December 31, 2014."

Inventory Cut-Off. Vogts Company Sells TVs. the Perpetual Inventory Was Stated as Stated