At December 31, 2025, suppose that Whispering Company's inventory records indicated a balance of $620000. Upon further investigation it was determined that this amount included the following: ▪ $127000 in inventory purchases made by Whispering shipped from the seller on December 27, 2025 terms FOB destination, but not due to be received until January 2, 2026 . ▪ $70000 in goods sold by Whispering with terms FOB destination on December 27, 2025. The goods are not expected to reach their destination until January 6, 2026 ▪ $7000 of goods received on consignment from Sandra Company What is Whispering's correct ending inventory balance at December 31, 2025? O $493000 O $486000 O $416000 O $613000

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12GI: Consider each of the following independent situations. Should a company report the goods in its...
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At December 31, 2025, suppose that Whispering Company's inventory records indicated a balance of $620000. Upon further
investigation it was determined that this amount included the following:
▪ $127000 in inventory purchases made by Whispering shipped from the seller on December 27, 2025 terms FOB destination, but not
due to be received until January 2, 2026
$70000 in goods sold by Whispering with terms FOB destination on December 27, 2025. The goods are not expected to reach their
destination until January 6, 2026
$7000 of goods received on consignment from Sandra Company
■
What is Whispering's correct ending inventory balance at December 31, 2025?
$493000
$486000
O $416000
O $613000
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Transcribed Image Text:At December 31, 2025, suppose that Whispering Company's inventory records indicated a balance of $620000. Upon further investigation it was determined that this amount included the following: ▪ $127000 in inventory purchases made by Whispering shipped from the seller on December 27, 2025 terms FOB destination, but not due to be received until January 2, 2026 $70000 in goods sold by Whispering with terms FOB destination on December 27, 2025. The goods are not expected to reach their destination until January 6, 2026 $7000 of goods received on consignment from Sandra Company ■ What is Whispering's correct ending inventory balance at December 31, 2025? $493000 $486000 O $416000 O $613000 Save for Later Attempts: 0 of 1 used Submit Answer
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