French Hens Manufacturing Co. purchased a ten-ton draw press at a cost of $180,000

with terms of 5/15, n/45. Payment was made within the discount period. Shipping costs

were $4,600, which included $200 for insurance in transit. Installation costs totaled

$12,000, which included $4,000 for taking out a section of a wall and rebuilding it

because the press was too large for the doorway. The capitalized cost of the ten-ton draw

press is:

A) $171,000

B) $187,400

C) $187,600

D) $185,760

The Rudolph Corporation's inventory on December 31, 2014, was $325,000

based on a physical count before considering the following transactions:

Merchandise costing $30,000, shipped f.o.b. shipping point from a supplier on

December 30, 2014, was received by Rudolph on January 5, 2015.

Merchandise costing $22,000, shipped f.o.b. destination from a supplier on

December 28, 2014, was received by Rudolph on January 3, 2015.

Merchandise costing $38,000 was shipped f.o.b. destination by Rudolph to a

customer on December 28, 2014. The goods arrived at the customer's location

on January 6, 2015.

Merchandise costing $12,000 was being held on consignment by Prancer

Company. This merchandise was not included in the physical count on

December 31, 2014.

6)What amount should Rudolph Corporation report as inventory in its December

31, 2014, balance sheet?

A) $367,000

B) $427,000

C) $405,000

D) $325,000