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E7-1 (Algo) Analyzing Items to Be Included in Inventory LO7-1 Based on its physical count of inventory in its warehouse at year-end, December 31 of

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E7-1 (Algo) Analyzing Items to Be Included in Inventory LO7-1 Based on its physical count of inventory in its warehouse at year-end, December 31 of the current year. Plummer Company planned to report inventory of $35,300. During the oudit, the independent CPA developed the following additional information: a. Goods from a supplier costing $690 are in transit with UPS on December 31 of the current year. The terms are FOB shipping point (explained in the "Required" section). Because these goods had not yet artived, they were excluded from the physical inventory count. b. Plummer delivered samples costing $1,870 to a customer on Deciember 27 of the current year, with the understanding that they would be returned to Plummer on January 15 of the next year, Because these goods were not on hand, they were excluded from the inventory count. c. On December 31 of the current year, goods in transit to customers, with terms FOB shipping point, amounted to $7,000 (expected delivery date January 10 of the next year). Because the goods had been shipped, they were excluded from the physical inventory count. d. On December 31 of the current year, goods in transit to customers, with terms FOB destination, amounted to $2,900 (expected delivery date January 10 of the next year). Because the goods had been shipped, they were excluded from the physical inventory count. Required: Plummer's accounting policy requires including in inventory all goods for which it has title. Note that the point where tisle (ownership) changes hands is determined by the shipping terms in the sales contract. When goods are shipped "FOB shipping point" title changes hands at shipment and the buyer normally pays for shipping. When they are shipped "FoB destination" tutie changes hands on delivery, and the seller normally pays for shipping. Compute the correct amount for the ending inventory. Note: If no adjustment is necessary, enter a $0 in the cell

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