TCO G) In your audit of Garza Company, you find that a physical inventory on December 31, 2010, showed merchandise
with a cost $541,000 was on hand at that date. You also discover the following items were all excluded from the inventory count.
• Merchandise of $71,000, which is held by Garza on consignment. The consignee is the Bontemps Company.
• Merchandise costing $33,000, which was shipped by Garza f.o.b. shipping point to a customer on December 31, 2010. The customer was expected to receive the merchandise on January 6, 2011.
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now
• Merchandise costing $46,000, which was shipped by Garza f.o.b. destination to a customer on December 29, 2010. The customer was scheduled to receive the merchandise on January 2, 2011.
• Merchandise costing $73,000 shipped by a vendor f.o.b. shipping point on December 30, 2010, and received by Garza on January 4, 2011.
• Merchandise costing $51,000 shipped by a vendor f.o.b. destination on December 31, 2010, and received by Garza on January 5, 2011.
Based on the above information, calculate the amount that should appear on Garza’s balance sheet at December 31, 2010, for inventory. (Points : 20)