1) Whispering Winds Corp. took a physical inventory on December 31 and determined that goods costing $205,000 were on hand. Not included in the physical count were $25,800 of goods purchased from Pelzer Corporation, FOB shipping point, and $21,800 of goods sold to Alvarez Company for $31,000, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Whispering Winds report as its December 31 inventory?

Inventory, December 31

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2)Tamarisk, Inc. just took its physical inventory. The count of inventory items on hand at the companys business locations resulted in a total inventory cost of $300,500. In reviewing the details of the count and related inventory transactions, you have discovered the following.

1.		Tamarisk has sent inventory costing $25,500 on consignment to Kako Company. All of this inventory was at Kakos showrooms on December 31.
2.		The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31.
3.		The company did not include in the count inventory (cost, $17,500) that was purchased with terms of FOB shipping point. The goods were in transit on December 31.

Compute the correct December 31 inventory.

Correct December 31 inventory

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