First Bank is considering giving Crane Company a loan. First, however, it decides that it would be a good idea to have further discussions with Crane's accountant. One area of particular concern is the inventory account, which has a December 31 balance of $280.000. Discussions with the accountant reveal the following: 1. 2. The physical count of the inventory did not include goods that cost $97,000 that were shipped to Crane, FOB shipping point, on December 27 and were still in transit at year end. Crane sold goods that cost $34,000 to Sheridan, FOB destination, on December 28. The goods are not expected to arrive at their destination in India until January 12. The goods were not included in the physical inventory because they were not in the warehouse. On December 31, Monty had $31,000 of goods held on consignment for Crane. The goods were not included in Crane's ending inventory balance. Crane received goods that cost $28,000 on January 2. The goods were shipped FOB shipping point on December 26 by Pronghorn. The goods were not included in the physical count. 3. 4. Determine the correct inventory amount at December 31. The correct cost of inventory is: Ending inventory-physical count Adjustments: Add to inventory: Determine the correct inventory amount at December 31. The correct cost of inventory is: Ending inventory-physical count $ Adjustments: Add to inventory: 1 Title passed to Crane when goods were shipped 2. Title remains with Crane until buyer receives goods 3. Consignor (Crane) owns goods 4. Title passed to Crane when goods were shipped $ Attempts: 0 of 3 used Submit Answer Save for Later