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Because the goods were not on hand they were not reply to indice Company to carrying the monede Travis Company has just completed a physical

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Because the goods were not on hand they were not reply to indice Company to carrying the monede Travis Company has just completed a physical inventory count at year-end, December 31 of the current year. Only the terms on the shelves in storage, and in the receiving area were courted and cosed on a PO basis. The inventory amounted to $06, 306. During the sudit, the independent CPA developed the following additional information a. Goods costing $850 were being used by a customer on a trial bosis and were excluded from the inventory count at December 31 of the current you b. Goods in transit on December 31 of the current year, from a supplier with terms FOB destination (explained in the "Required section cost $1,550. Because these goods had not yet arrived, they were c. On December 31 of the current year, goods in transit to customers, with or FOB shipping point, amounted to $1,800 (expected delivery date January 10 of next year). Because the goods had been ied. d. on December 28 of the current year, a customer purchased goods for cash amounting to $3,580 and left them or pickup on January 3 of next year. Travis Company had paid $1.670 for the goods and, On the date of the inventory count, the company received notice from a suppler that goods ordered earter at a cost of 1.200 had been delivered to the transportation company on December 27 of the current 1. On December 31 current year, the company whipped $1.400 worth of goods to a customer. Fos destination. The goods are expected to arrive at their destination no arter Than January 8 of next year. g. One of the sold by the company has such a low item on a consignment basis. This means that the manufacturer-supplier retains Ownership of the tom, and Travis Company (the consignes no responubiy to pay for the time until they are sold to a customer. Each month, Travis Company sends a report to the manufacturer on the number told and romis cash for the cost. At the end of December of the current yeur, Travis Company had of these on hand; therefore, they were included in the physical inventory count at $900 each Required: Assume that Travis's accounting policy requires including in inventory al goods for which the title. Note that the point where ite ownership changes hands is determined by the shipping terms in the sales soller normally pays for shipping. Begin with the $66.300 inventory amount and compute the correct amount for the ending inventory (Deductible amounts should be entered with a minus sign. If no adjustment is necessary, enter a 0 in the cell) Amount Ending inventory physical count on December 31, current year) a Goods out on trial to customer Goods in transit from supplier Goods in and to customer d. Goods held for customer pickup o Goods purchased and in trans 1. Good old and in trans D. Goods held on comment Correct inventry, December 31, current year $ 65.400

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