Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $300,500. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered.1. Wildhorse has sent inventory costing $25,600 on consignment to Richfield Company. All of this inventory was at Richfield’s showrooms on December 31.2. The company did not include in the count inventory (cost, $20,800) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31.3. The company did not include in the count inventory (cost, $18,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31.Compute the correct December 31 inventory.Correct December 31 inventory

Name: Wildhorse Co. just took its physical inventory on December 31. The cou
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Description: Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $300,500. In reviewing the details of the count and related inventory transa

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Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 67P

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Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $300,500. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered.

1.		Wildhorse has sent inventory costing $25,600 on consignment to Richfield Company. All of this inventory was at Richfield’s showrooms on December 31.
2.		The company did not include in the count inventory (cost, $20,800) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31.
3.		The company did not include in the count inventory (cost, $18,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31.

Compute the correct December 31 inventory.

Correct December 31 inventory

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