Question: In your audit of Jose Oliva Firm, you find that a physical inventory on December 31, 2007, showed merchandise with a cost of $441,000 was on hand at that date. You also find the following items were all excluded from the $441,000.
[A] Merchandise of $61,000 which is held by Oliva on consignment. The consignor is the Max Suzuki Firm.
[B] Merchandise costing $38,000 which was shipped by Oliva f.o.b. destination to a customer on December 31, 2007. The customer was expected to earn merchandise on January 6, 2008.
[C] Merchandise costing $46,000 which was shipped by Oliva f.o.b. shipping point to a customer on December 29, 2007. The customer was scheduled to receive merchandise on January 2, 2008.
[D] Merchandise costing $83,000 shipped by a vendor f.o.b. destination on December 30, 2007, & received by Oliva on January 4, 2008.
[E] Merchandise costing $51,000 shipped by a vendor f.o.b. seller on December 31, 2007, & received by Oliva on January 5, 2008.
Instruction;
Based on the above data, compute amount that should appear on Oliva’s balance sheet at December 31, 2007, for inventory.