Question
On December 31, Carter Company had an ending inventory of $83,700 based primarily on a physical count at its warehouse. In computing the final balance
On December 31, Carter Company had an ending inventory of $83,700 based primarily on a physical count at its warehouse. In computing the final balance ofInventory, the following information was available:
(a)Inventory items with a cost of $3,880 were included in ending inventory. These goods were onconsignmentfrom Rodriguez Company and had not yet been sold on December 31.
(b)Inventory items with a cost of $3,220 were included in ending inventory. These goods were in transit from Carter Company to Taylor Company and were soldFOB shipping point.
(c)Inventory items with a cost of $3,130 were included in ending inventory. These goods were in transit from Carter Company to Martin Company and were soldFOB destination.
Required:
Using the information given above, compute the correct final balance of Inventory.
Correct ending inventory balance:
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
?978-0073379609
