Vanilla Co.

a wholesale company, had the following information in its general ledger for
the year 2019?

Merchandise purchased for resale $507,500

Purchase returns 9,000

Marketing expense 7,100

Freight-in 19,220

Interest on notes payable to vendors 4,100

Freight-out (delivery expense on sales) 22,650

Cash discounts on purchases 5,190

What is Vanilla’s inventoriable cost for 2019? 512,530

Sweetie Inc.’s inventory of $887,000 at December 31, 2019, was based on a physical
count of goods priced at cost. The total does not include any adjustments for the
following items.

(a) Goods shipped from a vendor f.o.b. destination on December 24, 2019, at
an invoice cost of $12,000 to Sweetie were received on January 4, 2020. These goods
were excluded from the physical count.
(b) The physical count excluded goods held by a retailer (Deals Corp.) on
consignment for Sweetie, Inc. The cost of these goods to Sweetie was $32,000.
Sweetie did not record a sale when it shipped the goods to Deals.
(c) The inventory included $48,000 of goods that were in Sweetie’s
warehouse on the morning of December 31, 2019 but were shipped to a customer f.o.b.
shipping point later that day, after they had been included in the physical inventory
count.

What inventory amount should appear on Sweetie’s December 31, 2019 statement of
financial position? $887,000 + $32,000 − $48,000 = $871,000