E6-2

shipping point on December 26 by Brent Co. The goods were not included in the ical count. phys- 4. Wilfred sold goods costing $35,000 to Jesse Co., FOB destination, on December 30. goods were received at Jesse on January 8. They were not included in Wilfred's physi inventory cal 3 5. Wilfred received goods costing $44,000 on January 2 that were shipped FOB destina- tion on December 29. The shipment was a rush order that was supposed to arrive pn Instructions Determine the correct inventory amount on December 31. E6-2 Kari Downs, an auditor with Wheeler CPAs, is performing a review of Depue Com- pany's inventory account. Depue did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year- end was $740,000. However, the following information was not considered when deter- mining that amount. 1. Included in the company's count were goods with a cost of $250,000 that the company is holding on consignment. The goods belong to Kroeger Corporation. 2. The physical count did not include goods purchased by Depue with a cost of $40,000 that were shipped FOB destination on December 28 and did not arrive at Depue ware house until January 3