Pacific Grape Products Co., a Corporation v. Commissioner of Internal Revenue

POPE, Circuit Judge.

Petitioner is a canner of fruit and fruit products. It regularly billed its customers for all goods ordered by them, but not yet shipped and remaining in petitioner’s warehouse, on December 31 in each year. It accrued upon its books the income from the sales of such un-shipped goods in the taxable years ending on the days of such billing. On the same date it also credited to the accounts of brokers the brokerage due on account of sales of such unshipped goods, and accrued the cost of such unshipped goods including therein the anticipated cost of labeling, packaging and…