Question
The Martingrove Co. counted and valued its inventory at year-end, and found $55685 worth. However, their accounting system showed that there were two purchases that
The Martingrove Co. counted and valued its inventory at year-end, and found $55685 worth. However, their accounting system showed that there were two purchases that had not yet arrived. One had been shipped FOB destination, for $7155, and the other had been shipped FOB shipping point, for $5470. In addition, two sales made on the last day of the year would not have reached the customers. One, for $2780, was shipped FOB destination, and the other, for $6155, was shipped FOB shipping point.
What is the company's correct inventory value?
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
5th Edition
0912503351, 9780912503356
