Cullumber Company is concerned about the accuracy of its year-end inventory balance. Inventory shows a year-end balance of $328,600. Discussions with the company accountant reveal the following. 1. Cullumber received goods costing $52,600 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive on December 31. This purchase was included in the ending inventory of $328,600. 2. 3. 4. Cullumber sold goods costing $44,000 to Cusa Company, FOB shipping point, on December 28 for $66,700.The goods are not expected to arrive at Cusa 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 $91,700 that were shipped FOB destination to Cullumber on December 27 and were still in transit at year-end. Cullumber received goods costing $29,100 on January 2. The goods were shipped FOB shipping point on December 26 by Noble Co. The goods were not included in the physical count. 5. Cullumber sold goods costing $39,500 to Limerick Co. for $56,400. The goods were shipped FOB destination on December 30. The goods were received by Limerick on January 8 and were not included in Cullumber's physical inventory. C (a) Determine Cullumber's correct inventory amount on December 31.
Cullumber Company is concerned about the accuracy of its year-end inventory balance. Inventory shows a year-end balance of $328,600. Discussions with the company accountant reveal the following. 1. Cullumber received goods costing $52,600 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive on December 31. This purchase was included in the ending inventory of $328,600. 2. 3. 4. Cullumber sold goods costing $44,000 to Cusa Company, FOB shipping point, on December 28 for $66,700.The goods are not expected to arrive at Cusa 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 $91,700 that were shipped FOB destination to Cullumber on December 27 and were still in transit at year-end. Cullumber received goods costing $29,100 on January 2. The goods were shipped FOB shipping point on December 26 by Noble Co. The goods were not included in the physical count. 5. Cullumber sold goods costing $39,500 to Limerick Co. for $56,400. The goods were shipped FOB destination on December 30. The goods were received by Limerick on January 8 and were not included in Cullumber's physical inventory. C (a) Determine Cullumber's correct inventory amount on December 31.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
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Transcribed Image Text:Cullumber Company is concerned about the accuracy of its year-end inventory balance. Inventory shows a year-end balance of
$328,600. Discussions with the company accountant reveal the following.
1. Cullumber received goods costing $52,600 on January 2 that were shipped FOB destination on December 29. The
shipment was a rush order that was supposed to arrive on December 31. This purchase was included in the ending
inventory of $328,600.
2.
3.
4.
5.
Cullumber sold goods costing $44,000 to Cusa Company, FOB shipping point, on December 28 for $66,700.The goods are
not expected to arrive at Cusa 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 $91,700 that were shipped FOB destination to
Cullumber on December 27 and were still in transit at year-end.
Cullumber received goods costing $29,100 on January 2. The goods were shipped FOB shipping point on December 26 by
Noble Co. The goods were not included in the physical count.
Cullumber sold goods costing $39,500 to Limerick Co. for $56,400. The goods were shipped FOB destination on
December 30. The goods were received by Limerick on January 8 and were not included in Cullumber's physical
inventory.
(a)
Determine Cullumber's correct inventory amount on December 31.
Correct inventory on December 31
$
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