On December 31 of the Current Year,Plunkett Company Reported an Ending

question 232

Multiple Choice

On December 31 of the current year,Plunkett Company reported an ending inventory balance of $215,000.The following additional information is also available:
-Plunkett sold and shipped goods costing $38,000 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point.The goods were not included in the ending inventory amount of $215,000.
-Plunkett purchased goods costing $44,000 on December 29.The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year.The shipment was a rush order that was supposed to arrive by December 31.These goods were included in the ending inventory balance of $215,000.
-Plunkett's ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Carole Company.(Plunkett Company is the consignee.)
-Plunkett's ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end.
Based on the above information,the amount that Plunkett should report in ending inventory on December 31 is:

• A)$194,000
• B)$209,000
• C)$200,000
• D)$171,000
• E)$156,000

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Definitions:

Viability

The ability to work successfully or live and grow under certain conditions.

Stimulus-Response Connections

The association between a specific stimulus and a particular response, fundamental to classical and operant conditioning theories.

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