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Compute the correct inventory amount at december

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Reference no: EM132838398

CORRECTING THE PHYSICAL INVENTORY COUNT

In your audit of the Rainbow Company, you noted that a physical inventory count on December 31, 2018, showed merchandise costing $850,000 was on hand at that date. Your examination reveals the following items are all excluded from the inventory per count.

  • Merchandise of $20,000 which was held on consignment.
  • Goods costing $39,500 which was shipped FOB destination on December 31, 2018. These goods were delivered to the customer on January 6, 2019.
  • Goods costing $16,800 which was shipped FOB shipping point to a customer on December 29, 2018. The customer received these goods on January 2, 2019.
  • Merchandise costing $76,150 shipped by a seller FOB destination on December 28, 2018, and received by Rainbow Company on January 3, 2019.
  • Goods costing $16,444 shipped by a vendor FOB seller on December 31, 2018, and received by Rainbow Company on January 4, 2010.

Required:

Problem 1: Compute the correct inventory amount at December 31, 2019.

Reference no: EM132838398

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