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Inventory at the end of April 2008. 50 units Production expected during April 2008.
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Determined that 96000 of goods purchased were in transit that were shipped fob.
Took a physical inventory at the end of the year and determined that 810000 of goods were on hand. Inventory at the beginning of April 2008. At a cost of 20 per box that means the Cost of Goods Sold was 740. At the beginning of September 2008 RFI Company reported Merchandise Inventory of 4000. He sold each unit for 20. How should this loss be reflected in the quarterly income statements of CD Company.
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