Question
On December 31, Wood Company had an ending inventory of $67,600 based primarily on a physical count at its warehouse. In computing the final balance
On December 31, Wood Company had an ending inventory of $67,600 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 $2,760 were excluded from ending inventory. These goods were onconsignmentfrom Walker Company and had not yet been sold on December 31.
(b)Inventory items with a cost of $2,840 were excluded from ending inventory. These goods were in transit from Cook Company to Wood Company and were purchasedFOB shipping point.
(c)Inventory items with a cost of $2,380 were excluded from ending inventory. These goods were in transit from Ross Company to Wood Company and were purchasedFOB destination.
Correct ending inventory balance:
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Management Accounting Information for creating and managing value
Authors: Kim Langfield Smith, David Smith, Paul Andon, Ronald Hilton, Helen Thorne
8th edition
9781760420413 , 978-1760420406
