Stallman Company took a physical inventory on December 31 anddetermined that goods costing $203,240 were on hand. Not includedin the physical count were $28,310 of goods purchased from PelzerCorporation, f.o.b. shipping point, and $25,110 of goods sold toAlvarez Company for $39,250, f.o.b. destination. Both the Pelzerpurchase and the Alvarez sale were in transit at year-end. Whatamount should Stallman report as its December 31 inventory?
Stallman Company took a physical inventory on December 31 anddetermined that goods costing $203,240 were on hand. Not includedin the physical count were $28,310 of goods purchased from PelzerCorporation, f.o.b. shipping point, and $25,110 of goods sold toAlvarez Company for $39,250, f.o.b. destination. Both the Pelzerpurchase and the Alvarez sale were in transit at year-end. Whatamount should Stallman report as its December 31 inventory?
Related questions
In your audit of Steve Company, you find that a physical inventory on December 31, 2017, showed merchandise with a cost of $439,750 was on hand at that date. You also discover the following items were all excluded from the $439,750.
| 1. | Merchandise of $63,260 which is held by Steve on consignment. The consignor is the Max Suzuki Company. | |
| 2. | Merchandise costing $34,870 which was shipped by Steve f.o.b. destination to a customer on December 31, 2017. The customer was expected to receive the merchandise on January 6, 2018. | |
| 3. | Merchandise costing $44,590 which was shipped by Steve f.o.b. shipping point to a customer on December 29, 2017. The customer was scheduled to receive the merchandise on January 2, 2018. | |
| 4. | Merchandise costing $76,380 shipped by a vendor f.o.b. destination on December 30, 2017, and received by Steve on January 4, 2018. | |
| 5. | Merchandise costing $54,450 shipped by a vendor f.o.b. shipping point on December 31, 2017, and received by Steve on January 5, 2018. |
Based on the above information, calculate the amount that should appear on Steveâs balance sheet at December 31, 2017, for inventory.
