Question

On December 31 of the current year, Plunkett Company reported an ending inventory balance of $211,500. The following additional information is also available:

• Plunkett sold and shipped goods costing $37,300 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $211,500.
• Plunkett purchased goods costing $43,300 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 $211,500.
• Plunkett's ending inventory balance of $211,500 included $14,300 of goods being held on consignment from Carole Company. (Plunkett Company is the consignee.)
• Plunkett's ending inventory balance of $211,500 did not include goods costing $94,300 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:

Answer 1

Inventory as reported	211500
1	0	Correctly not included
2	-43300	To be excluded
3	-14300	To be excluded
4	0	Correctly not included
Amount Plunkett should report in ending inventory on December 31	153900