Tri-State Bank and Trust is considering giving Josef Company a loan.
Before doing so, management decides that further discussions with
Josef’s accountant may be desirable. One area of particular concern is
the inventory account, which has a year-end balance of $327,360.
Discussions with the accountant reveal the following.
sold goods costing $38,800 to Sorci Company, FOB shipping point, on
December 28. The goods are not expected to arrive at Sorci until January
12. The goods were not included in the physical inventory because they
were not in the warehouse.
physical count of the inventory did not include goods costing
$90,190 that were shipped to Josef FOB destination on December 27 and
were still in transit at year-end.
received goods costing $26,060 on January 2. The goods were shipped FOB
shipping point on December 26 by Solita Co. The goods were not included
in the physical count.
sold goods costing $30,040 to Natali Co., FOB destination, on December
30. The goods were received at Natali on January 8. They were not
included in Josef’s physical inventory.
received goods costing $45,590 on January 2 that were shipped FOB
destination on December 29. The shipment was a rush order that was
supposed to arrive December 31. This purchase was included in the ending
inventory of $327,360.
Determine the correct inventory amount on December 31.
The correct inventory amount $
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