helves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $66 , 100 . During he audit, the independent CPA developed the following additional information: a. Goods costing $830 were being used by a customer on a trial basis and were excluded from the inventory count at December 31 of the current year. b. Goods in transit on December 31 of the current year, from a supplier, with terms FOB destination (explained in the "Required" section), cost $1 , 300 . Because these goods had not yet arrived, they were excluded from the physical inventory count. c. On December 31 of the current year, goods in transit to customers, with terms FOB shipping point, amounted to $2.000 (expected delivery date January 10 of next year). Because the goods had been shipped, they were excluded trom the physical inventory count d. On December 28 of the current year, a customer purchased goods for cash amounting to $3 , 350 and left them tor pichup on January 3 of next year." Travis Company had pald $1 , 780 for the goods and, because they were on hand, included the latter amount in the physical inventory count. e. On the date of the Inventory count, the company recelved notice from a supplier that goods ordered eariler at a cost of $37000 had been delivered to the transportation company on December 27 of the current year; the ferms were FOB shipping point, Because the shipment had not arrived by December 31 of the current year. it was exclided fiom the physical inventiry count f. On December 31 of the current year, the company shipped $1.800 worth of goods to a customer, FOB destinationi. Fhe geodis ine expected to arrive at their destination no earlier than January 8 of next year. Because the goods were not on band ther were not included in the physical inventory count. 9. One of the items sold by the company has such a low volume that management planned to drop it last vear, lo induce framis Company to continue carrying the item, the manutacturer-supplier provided the item on a "consignment basit-" This meuns that the manufacturer supplier retains ownership of the item, and Travis Company the consignee) hirs no respoustiblity to pay for ffe items until they are sold to a customer. Each month, Travis Company sends a report to the minafacturer on the number soid and remits cash for the cost. At the end of December of the current year. Travis Company had soven of inese ilens con hand therefore, they were included in the physical inventory count at $830 each. Required: (title changes hands at stipment, and the buyer normally pays for shipping When they are shipped "foB deginniton" imie ihanger. hands on delivery, and the seller normally pays tor shipping. Compute the correct amount for the encing imeniary the manufacturer-supplier retains ownership of the item, and Travis Company (the consignee) has no responsibility to pay for items until they are sold to a customer. Each month. Travis Company sends a report to the manufacturer on the number sold ai remits cash for the cost. At the end of December of the current year, Travis Company had seven of these ltems on hand: therefore, they were included in the physical inventory count at $830 each. Required: Assume that Travis's accounting policy requires including in inventory all goods for which it has title. Note that the point where titic (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," tithe changes hands on delivery, and the seller normally pays for shipping. Compute the correct amount for the ending inventory. Note: Deductible amounts should be entered with a minus sign. helves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $66 , 100 . During he audit, the independent CPA developed the following additional information: a. Goods costing $830 were being used by a customer on a trial basis and were excluded from the inventory count at December 31 of the current year. b. Goods in transit on December 31 of the current year, from a supplier, with terms FOB destination (explained in the "Required" section), cost $1 , 300 . Because these goods had not yet arrived, they were excluded from the physical inventory count. c. On December 31 of the current year, goods in transit to customers, with terms FOB shipping point, amounted to $2.000 (expected delivery date January 10 of next year). Because the goods had been shipped, they were excluded trom the physical inventory count d. On December 28 of the current year, a customer purchased goods for cash amounting to $3 , 350 and left them tor pichup on January 3 of next year." Travis Company had pald $1 , 780 for the goods and, because they were on hand, included the latter amount in the physical inventory count. e. On the date of the Inventory count, the company recelved notice from a supplier that goods ordered eariler at a cost of $37000 had been delivered to the transportation company on December 27 of the current year; the ferms were FOB shipping point, Because the shipment had not arrived by December 31 of the current year. it was exclided fiom the physical inventiry count f. On December 31 of the current year, the company shipped $1.800 worth of goods to a customer, FOB destinationi. Fhe geodis ine expected to arrive at their destination no earlier than January 8 of next year. Because the goods were not on band ther were not included in the physical inventory count. 9. One of the items sold by the company has such a low volume that management planned to drop it last vear, lo induce framis Company to continue carrying the item, the manutacturer-supplier provided the item on a "consignment basit-" This meuns that the manufacturer supplier retains ownership of the item, and Travis Company the consignee) hirs no respoustiblity to pay for ffe items until they are sold to a customer. Each month, Travis Company sends a report to the minafacturer on the number soid and remits cash for the cost. At the end of December of the current year. Travis Company had soven of inese ilens con hand therefore, they were included in the physical inventory count at $830 each. Required: (title changes hands at stipment, and the buyer normally pays for shipping When they are shipped "foB deginniton" imie ihanger. hands on delivery, and the seller normally pays tor shipping. Compute the correct amount for the encing imeniary the manufacturer-supplier retains ownership of the item, and Travis Company (the consignee) has no responsibility to pay for items until they are sold to a customer. Each month. Travis Company sends a report to the manufacturer on the number sold ai remits cash for the cost. At the end of December of the current year, Travis Company had seven of these ltems on hand: therefore, they were included in the physical inventory count at $830 each. Required: Assume that Travis's accounting policy requires including in inventory all goods for which it has title. Note that the point where titic (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," tithe changes hands on delivery, and the seller normally pays for shipping. Compute the correct amount for the ending inventory. Note: Deductible amounts should be entered with a minus sign