Question
On December 31, Morris Company had an ending inventory of $56,300 based primarily on a physical count at its warehouse. In computing the final balance
On December 31, Morris Company had an ending inventory of $56,300 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 $2,580 were excluded from ending inventory. These goods were onconsignmentto Reed Company and had not yet been sold by December 31.
(b)Inventory items with a cost of $3,140 were included in ending inventory. These goods were in transit from Scott Company to Morris Company and were purchasedFOB shipping point.
(c)Inventory items with a cost of $2,760 were included in ending inventory. These goods were in transit from Lewis Company to Morris Company and were purchasedFOB destination.
Required:Using the information given above, compute the correct final balance of Inventory.
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Payroll Accounting 2018
Authors: Bernard J. Bieg, Judith Toland
28th edition
1337291056, 978-1337291057, 1337291137, 9781337291132, 9781337516686 , 978-1337291040
