Tutorial: Sun Company Ending Inventory

Sun Company Ending Inventory

Sun Company is trying to determine the value of its ending inventory as of March 31, 2014, the company’s year-end. The following transactions occurred, and the accountant asked your help in determining whether they should be recorded or not.

(a) On March 30, Sun shipped to a customer goods costing $1,000. The goods were shipped FOB destination, and the receiving report indicates that the customer received the goods on April 1.

Solution Table

Start by entering the Sun Company transactions into an excel spreadsheet for easier calculations.

Included Exluded
a 0 1000
b 600
c 750 0
d 640 380
e 640 0
f 400 0

The final ending inventory is $2,410. 

 

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