Inventoriable Costs in your audit of Garza Company, you find that a physical inventory on December 31, 2010, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items were all excluded from the $441,000. 1. Merchandise of $61,000 which is held by Garza on consignment. The consignor is the Bontemps Company. 2. Merchandise costing $33,000 which was shipped by Garza f.o.b. destination to a customer on December 31, 2010. The customer was expected to receive the merchandise on January 6, 2011. 3. Merchandise costing $46,000 which was shipped by Garza f.o.b. shipping point to a customer on December 29, 2010. The customer was scheduled to receive the merchandise on January 2, 2011. 4. Merchandise costing $73,000 shipped by a vendor f.o.b. destination on December 30, 2010, and received by Garza on January 4, 2011. 5. Merchandise costing $51,000 shipped by a vendor f.o.b. shipping point 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.

Inventoriable Costs Assume that in an annual audit of Webber Inc. at December 31, 2010, you. Find the following transactions near the closing date.
1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2010. The customer was billed on that date and the machine excluded from inventory although it was shipped on January 4, 2011.
2. Merchandise costing $2,800 was received on January 3, 2011 and the related purchase invoice recorded January 5. The invoice showed the shipment was made on December 29, 2010, f.o.b. destination.
3. A packing case containing a product costing $3,400 was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked Hold for shipping instructions. Your investigation revealed that the customer order was dated December 18, 2010, but that the case was shipped and the customer billed on January 10, 2011. The product was a stock item of your client.
4. Merchandise costing $720 was received on December 28, 2010, and the invoice was not recorded. You located it in the hands of the purchasing agent; it was marked on consignment.
5. Merchandise received on January 6, 2011, costing $680 was entered in the purchase journal on January 7, 2011. The invoice showed shipment was made f.o.b. supplier warehouse on December 31, 2010. Because it was not on hand at December 31, it was not included in inventory. Assuming that each of the amounts is material, state whether the merchandise should be included in the client inventory, and give your reason for your decision on each item