Stansbury Company Determined Its December 31, 2015 Inventory to Be

question 67

Multiple Choice

Stansbury Company determined its December 31, 2015 inventory to be $1,000,000 based on a physical count priced at cost. Additional information for the company is as follows: Merchandise costing $90,000 was shipped FOB shipping point from a vendor on December 30, 2015. This merchandise was received and recorded on January 5, 2016.
Goods costing $120,000 were staged on the shipping dock and excluded from inventory although shipment was not
Made until January 4, 2016. The goods were billed to the customer FOB shipping point on December 30, 2015.
What is Stansbury's ending inventory for its December 31, 2015 balance sheet?

• A) $1,000,000
• B) $1,090,000
• C) $1,120,000
• D) $1,210,000

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Definitions:

Employee Empowerment

The process of giving employees the authority, resources, and motivation to help them contribute to their fullest potential.

Delayering

The process of reducing the number of levels in an organization's hierarchy, aiming to simplify structures and improve communication and decision-making.

Skill-based Pay Systems

Compensation strategies where employees are paid based on the number, kind, or level of skills they possess, rather than their job title or position.

Job Enrichment

Empowering workers by adding more decision-making authority to jobs.