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The company received an order on Dec.29 that was boxed and was sitting on the loading dock awaiting pick-up on December 31. The shipper picked up the goods on January 1 and delivered them on January 6. The shipping terms were FOB shipping point. The goods had a selling price of $40,000 and a cost of $30,000. The goods were not included in the count because they were sitting on the dock.
5.On December 29 Strawser shipped goods with a selling price of 80,000 and a cost of 60,000 to District Sales Corporation FOB shipping point. The goods arrived on January 3. District sales had only ordered goods with a selling price of 10,000 and a cost of 8,000. However,a sales manager at Strawser had authorized the shipment and said that if District wanted to ship the goods back next week,it could.
6.Included in the count was 40,000 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Strawser's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, "since that is what we paid for them, after all."
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