Cullumber company took a physical inventory on december 31 and determined that goods costing $514,000 were on hand. not included in the physical count were $7,000 of goods purchased from oriole corporation, f. o.b. shipping point, and $22,000 of goods sold to ro-ro company for $32,000, f. o.b. destination. both the oriole purchase and the ro-ro sale were in transit at year-end. what amount should cullumber report as its december 31 inventory?

The amount that Cullumber should report as its December 31 inventory is $543000.

Explanation:

FOB shipping point means the purchaser gains title to the merchandise at the shipping point, so when Pelzer shipped the goods, they belonged to Stallman.

**FOB destination means the seller maintains title until the merchandise reaches its destination, so since the goods have not reached their destination, the goods still belonged to Stallman

inventory on december 31 = inventory on december 31 + goods in transit purchased FOB shipping point + goods in transit sold FOB destintion

                                            = $514,000 + $7,000 + $22,000

                                            = $543000

Therefore, The amount that Cullumber should report as its December 31 inventory is $543000.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

the interest will be $59.71

hope this