| E8-2 (Inventoriable Costs) In your audit of Jose Oliva Company, you find that a physical inventory on |
| December 31, 2014, showed merchandise with a cost of |
$441,000 |
was on hand at that date. |
| You also discover the following items were all excluded from the |
$441,000 |
|
| 1. Merchandise of |
$61,000 |
which is held by Oliva on consignment. The consignor is |
| the Max Suzuki Company. |
| 2. Merchandise costing |
$38,000 |
which was shipped by Oliva f.o.b. destination to a |
| customer on December 31, 2014. The customer was expected to receive the merchandise on |
| January 6, 2015. |
| 3. Merchandise costing |
$46,000 |
which was shipped by Oliva f.o.b. shipping point to a |
| customer on December 29, 2014. The customer was scheduled to receive the merchandise on |
| January 2, 2015. |
| 4. Merchandise costing |
$83,000 |
shipped by a vendor f.o.b. destination on |
| December 30, 2014, and received by Oliva on January 4, 2015. |
| 5. Merchandise costing |
$51,000 |
shipped by a vendor f.o.b. seller on December 31, 2014 |
| and received by Garza on January 5, 2015. |
|
| Instructions: |
| Based on the above information, calculate the amount that should appear on Oliva's balance sheet at December 31, 2014, for inventory. |