Culver Company was undergoing an end of year audit of its financial records. The auditors were in the process of reviewing Culver's inventory for year-end. December 31, 2022. They completed an end of year inventory. The value of the ending inventory prior to any adjustments was $182,000, but before finishing up they had a few questions. Discussion with Culver's accountant revealed the following: (a) (b) (c) (d) (e) ( Culver sold goods costing $62,500 to Linda Company FOB shipping point on December 28. The goods are not expected to reach Linda 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 $96,100 that were shipped to Culver FOB destination on December 27 and were still in transit at year-end. Culver received goods costing $24,600 on January 2. The goods were shipped FOB shipping point on December 26 by Splish Company. The goods were not included in the physical count. Culver sold goods costing $39,900 to Bonita Company FOB destination on December 30. The goods were received by Bonita Company on January 8. Because the goods had been shipped, they were excluded from the physical inventory count. Culver received goods costing $41,800 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to have arrived on December 31. This purchase was included in the ending inventory of $183,500. Culver Company, as the consignee, had goods on consignment that cost $3,400. Because these goods were on hand as of December 31, they were included in the physical inventory count. Analyze the above information and calculate a corrected amount for the ending inventory. Corrected inventory $
Culver Company was undergoing an end of year audit of its financial records. The auditors were in the process of reviewing Culver's inventory for year-end. December 31, 2022. They completed an end of year inventory. The value of the ending inventory prior to any adjustments was $182,000, but before finishing up they had a few questions. Discussion with Culver's accountant revealed the following: (a) (b) (c) (d) (e) ( Culver sold goods costing $62,500 to Linda Company FOB shipping point on December 28. The goods are not expected to reach Linda 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 $96,100 that were shipped to Culver FOB destination on December 27 and were still in transit at year-end. Culver received goods costing $24,600 on January 2. The goods were shipped FOB shipping point on December 26 by Splish Company. The goods were not included in the physical count. Culver sold goods costing $39,900 to Bonita Company FOB destination on December 30. The goods were received by Bonita Company on January 8. Because the goods had been shipped, they were excluded from the physical inventory count. Culver received goods costing $41,800 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to have arrived on December 31. This purchase was included in the ending inventory of $183,500. Culver Company, as the consignee, had goods on consignment that cost $3,400. Because these goods were on hand as of December 31, they were included in the physical inventory count. Analyze the above information and calculate a corrected amount for the ending inventory. Corrected inventory $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Culver Company was undergoing an end of year audit of its financial records. The auditors were in the process of reviewing Culver’s inventory for year-end, December 31, 2022. They completed an end of year inventory. The value of the ending inventory prior to any adjustments was $182,000, but before finishing up they had a few questions. Discussion with Culver’s accountant revealed the following:
(a) Culver sold goods costing $62,500 to Linda Company FOB shipping point on December 28. The goods are not expected to reach Linda until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
(b) The physical count of the inventory did not include goods costing $96,100 that were shipped to Culver FOB destination on December 27 and were still in transit at year-end.
(c) Culver received goods costing $24,600 on January 2. The goods were shipped FOB shipping point on December 26 by Splish Company. The goods were not included in the physical count.
(d) Culver sold goods costing $39,900 to Bonita Company FOB destination on December 30. The goods were received by Bonita Company on January 8. Because the goods had been shipped, they were excluded from the physical inventory count.
(e) Culver received goods costing $41,800 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to have arrived on December 31. This purchase was included in the ending inventory of $183,500.
(f) Culver Company, as the consignee, had goods on consignment that cost $3,400. Because these goods were on hand as of December 31, they were included in the physical inventory count.
**Analyze the above information and calculate a corrected amount for the ending inventory.**
Corrected inventory [text box]
**Submit Answer**
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Transcribed Image Text:**Current Attempt in Progress**
Culver Company was undergoing an end of year audit of its financial records. The auditors were in the process of reviewing Culver’s inventory for year-end, December 31, 2022. They completed an end of year inventory. The value of the ending inventory prior to any adjustments was $182,000, but before finishing up they had a few questions. Discussion with Culver’s accountant revealed the following:
(a) Culver sold goods costing $62,500 to Linda Company FOB shipping point on December 28. The goods are not expected to reach Linda until January 12. The goods were not included in the physical inventory because they were not in the warehouse.
(b) The physical count of the inventory did not include goods costing $96,100 that were shipped to Culver FOB destination on December 27 and were still in transit at year-end.
(c) Culver received goods costing $24,600 on January 2. The goods were shipped FOB shipping point on December 26 by Splish Company. The goods were not included in the physical count.
(d) Culver sold goods costing $39,900 to Bonita Company FOB destination on December 30. The goods were received by Bonita Company on January 8. Because the goods had been shipped, they were excluded from the physical inventory count.
(e) Culver received goods costing $41,800 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to have arrived on December 31. This purchase was included in the ending inventory of $183,500.
(f) Culver Company, as the consignee, had goods on consignment that cost $3,400. Because these goods were on hand as of December 31, they were included in the physical inventory count.
**Analyze the above information and calculate a corrected amount for the ending inventory.**
Corrected inventory [text box]
**Submit Answer**
Attempts: 0 of 4 used
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