Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Umatilla Bank and Trust is considering giving Splish Brothers Inc. a loan. Before doing so, it decides that further discussions with Splish Brothers's accountant may

Umatilla Bank and Trust is considering giving Splish Brothers Inc. a loan. Before doing so, it decides that further discussions with Splish Brothers's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $247,680. Discussions with the accountant reveal the following.

Splish Brothers shipped goods costing $50,590 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physical inventory because they were not in the warehouse.

The physical count of the inventory did not include goods costing $100,920 that were shipped to Splish Brothers FOB destination on December 27 and were still in transit at year-end.

Splish Brothers received goods costing $25,880 on January 2. The goods were shipped FOB shipping point on December 26

by Yanice Co. The goods were not included in the physical count.

Splish Brothers shipped goods costing $54,220 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Splish Brothers physical inventory.

Splish Brothers received goods costing $43,380 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $247.680

Determine the correct inventory amount on December 31.

The correct inventory amount on December 31

image text in transcribed
Umatilla Bank and Trust is considering giving Splish Brothers Inc a loan. Before doing so, it decides that further discussions with Splish Brothers's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $247,680. Discussions with the accountant reveal the following. 1. Splish Brothers shipped goods costing $50,590 to Hemlock Company FOB shipping point on December 28 . The goods are not expected to reach Hemlock until January 12 . The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $100,920 that were shipped to 5 plish Brothers FOB destination on December 27 and were still in transit at year-end 3. Splish Brothers received goods costing $25,880 on January 2 . The goods were shipped FOB shipping point on December 26 by Yanice C. The goods were not included in the physical count. 4. Splish Brothers shipped goods costing $54,220 to Ehler of Canada FOB destination on December 30. The goods were received in Canada on January 8 . They were not included in Splish Brothers physical inventory. 5. Splish Brothers received goods costing $43,380 on January 2 that were shipped FOB destination on December 29 . The shipment was a rush order that was supposed to arrive December 31 . This purchase was included in the ending inventory of $247,680

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

Essentials Of Accounting

Authors: Robert N. Anthony, Leslie Pearlman Breitner

9th Edition

013149693X, 9780131496934

More Books

Students also viewed these Accounting questions