Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31 of the current year, Plunkett Company reported an ending inventory balance of $213,000. The following additional information is also available: Plunkett sold

On December 31 of the current year, Plunkett Company reported an ending inventory balance of $213,000. The following additional information is also available:

  • Plunkett sold and shipped goods costing $37,600 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in theending inventory amount of $213,000.
  • Plunkett purchased goods costing $43,600 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $213,000.
  • Plunkett's ending inventory balance of $213,000 included $14,600 of goods being held on consignment from Carole Company. (Plunkett Company is the consignee.)
  • Plunkett's ending inventory balance of $213,000 did not include goods costing $94,600 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end.

Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Late RC Sekhar, AV Rajagopalan

1st Edition

195683609, 978-0195683608

More Books

Students also viewed these Accounting questions

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago

Question

What does this look like?

Answered: 1 week ago