Determine the correct inventory amount

Reference no: EM132082419

Qusetion: Umatilla Bank and Trust is considering giving Ivanhoe Company a loan. Before doing so, it decides that further discussions with Ivanhoe Company's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $261,900. Discussions with the accountant reveal the following.

1. Ivanhoe Company sold goods costing $49,760 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 $89,410 that were shipped to Ivanhoe Company FOB destination on December 27 and were still in transit at year-end.

3. Ivanhoe Company received goods costing $27,140 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. Ivanhoe Company sold goods costing $54,330 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Ivanhoe Company physical inventory.

5. Ivanhoe Company received goods costing $41,100 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 $261,900.

Determine the correct inventory amount on December 31.

Reference no: EM132082419

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