View Policies Current Attempt in Progress First Bank is considering giving Pharoah Company a loan. First, however, it decides that it would be a good idea to have further discussions with Pharoah's accountant One area of particular concern is the inventory account, which has a December 31 balance of $280.000. Discussions with the accountant reveal the following: 1. 2. The physical count of the inventory did not include goods that cost $90,000 that were shipped to Pharoah, FOB shipping point, on December 27 and were still in transit at year end. Pharoah sold goods that cost $34.000 to Cullumber FOB destination, on December 28. The goods are not expected to arrive at their destination in India until January 12. The goods were not included in the physical inventory because they were not in the warehouse. On December 31, Flounder had $31,000 of goods held on consignment for Pharoah. The goods were not included in Pharoah's ending inventory balance. Pharoah received goods that cost $27.500 on January 2. The goods were shipped FOB shipping point on December 26 by Sheffield. The goods were not included in the physical count. 3. 4. Determine the correct inventory amount at December 31 Determine the correct inventory amount at December 31. The correct cost of inventory is: Ending inventory-physical count $ Adjustments: Add to inventory: 1. Title passed to Pharoah when goods were shipped 2. Title remains with Pharoah until buyer receives goods 3. Consignor (Pharoah) owns goods 4. Title passed to Pharoah when goods were shipped $