Sherman, Inc

question 174

Short Answer

Sherman, Inc.counted its ending inventory as $178,000 at year-end, January 31, 2016.Upon review of the records, it was noted that the following items were in transit during the count: A)$2,000 of goods shipped by a supplier to Sherman sent FOB destination on January 31 were received February 5, and were not counted by Sherman.
B)$5,000 of goods shipped by a supplier to Sherman sent FOB shipping point on January 30 were received February 2, and were not counted by Sherman.
C)$6,000 of goods shipped by Sherman to a customer FOB shipping point on January 31 were received by the customer February 3, and were counted by Sherman.
​
Determine the correct inventory balance at January 31.
A) $172,000
B) $174,000
C) $178,000
D) $177,000

• A) $172,000
• B) $174,000
• C) $178,000
• D) $177,000

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Definitions:

Buoyancy

The force that causes objects to float in a fluid by displacing a volume of fluid whose weight equals the object's weight.

Adaptation

The process by which organisms become better suited to their environment through genetic changes over generations.

Gravity

The natural force of attraction exerted by a celestial body, such as Earth, upon objects, drawing them toward its center.

Animal Movement

The various motions accomplished by animals as a result of muscle contraction.