Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Umatilla Bank and Trust is considering glving Sandhill Company a loan. Before doing so, it decides that further discussions with Sondhitrs accountint inay be desirable

image text in transcribed
image text in transcribed
Umatilla Bank and Trust is considering glving Sandhill Company a loan. Before doing so, it decides that further discussions with Sondhitrs accountint inay be desirable One area of particular conctern is the imventory sccount, which has a year-end balance of $263,510. Discussions with the accountant reveal the following. 1. Sandhill shipped goods costing $60,340 to Whispering Company FOB shipping point on December 28 . The goods are not expected to reach Whispering until January 12 . The goods were not included in the plysical inventory because they were not in the warehouse. 2. The physical count of the irventory did not include goods costing $97,600 that were shipped to Sandhill fo8 destination on December 27 and were stili in tranit at yearend. Yanke Ca. The soods were notincluded in the phryical count. 4. Sandhill shipped goods costing 549,400 to fhler of Canads FOE destination on December 30 . The goods were received in Canada on January 8. Ther were not included in Sandhilirs physical impentory. 5. Santhal received goods costine $45,300 on January 2 that were shippod Foe destination on December 29 . The shlpment was aruth order that was supposed to arrive December 31 . This purchase was included in the ending inventory of $2.63.510. 3. Sandhill received goods costing $27,240 on January 2 . The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not inctuded in the physicat count. 4. Sandhill shipped goods costing $49,400 to Ehler of Canada FOB destination on December 30 . The goods were received in Canada on January 8 . They were not included in Sandhill's physical inventory. 5. Sandhill received goods costing $45,300 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 $263,510. Determine the correct inventory amount on December 31. Correct inventory amount on December 31

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_2

Step: 3

blur-text-image_3

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

Building Accounting Systems Using Access 2010

Authors: James Perry, Richard Newmark

8th Edition

1111530998, 978-1111530990

More Books

Students also viewed these Accounting questions

Question

=+12. a. How is a predetermined factory overhead rate calculated?

Answered: 1 week ago