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Umatilla Bank and Trust is considering giving Oriole Company a
Umatilla Bank and Trust is considering giving Oriole Company a loan. Before doing so, it decides that further discussions with Oriole Company?s accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $263,520. Discussions with the accountant reveal the following.
|1.||Oriole Company sold goods costing $52,160 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.|
|2.||The physical count of the inventory did not include goods costing $87,860 that were shipped to Oriole Company FOB destination on December 27 and were still in transit at year-end.|
|3.||Oriole Company received goods costing $24,880 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count.|
|4.||Oriole Company sold goods costing $52,890 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Oriole Company physical inventory. |
|5.||Oriole Company received goods costing $38,830 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 $263,520.|
Determine the correct inventory amount on December 31.
Please show how you got the answer.
|The correct inventory amount on December 31|| |
This question was answered on: Feb 21, 2020
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