Determine the correct inventory amount

Assignment Help Finance Basics

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

Questions Cloud

Identify a criminal justice program or policy : Summarize a peer-reviewed research article about whether that policy or program works. Don't forget to include the APA citation/reference for your article.

How much will the spring stretch? : When a load of 4 N is hanging on a spring, it stretches 0.5 m. If you cut the spring in half and 4 N is hanging on it again,

Compute the capital gains tax liabilities : Compute the capital gains tax liabilities for both Froster and Fiorrin for 2016-17. Explain the treatment of capital gains for spouses or civil partners.

Explain the execution-of-public-duty defense : Explain the execution-of-public-duty defense. When and by whom might such a defense be used?

Determine the correct inventory amount : Umatilla Bank and Trust is considering giving Ivanhoe Company a loan. Before doing so, it decides that further discussions with Ivanhoe Company's accountant.

What were the underlying causes of the stock market crash : What were the underlying causes of the 1929 stock market crash? How did Herbert Hoover react to the economic situation? Why do you think he reacted in this way?

How much would it cost him to buy such an annuity today : An uncle of yours who is about to retire wants to sell some of his stock and buy an annuity that will provide him with income of $73,000 per year for 30 years.

Prepare presentation on the department of homeland security : The working group shall be guided in their deliberations and actions by the Department of Homeland Security.

What ultimate objective of forensic accounting is : What ultimate objective of forensic accounting is for an organization to be reasonably certain that it is preventing fraud and that it can detect.

User Account

All Pages