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Question - On December 31, Baker Company had an ending inventory of $88,800 based primarily on a physical count at its warehouse. In computing the final balance of Inventory, the following information was available:
(a) Inventory items with a cost of $2,080 were included in ending inventory. These goods were on consignment to Wright Company. They had not yet been sold.
(b) Inventory items with a cost of $3,300 were included in ending inventory. These goods were in transit from Baker Company to Roberts Company and were sold FOB shipping point.
(c) Inventory items with a cost of $2,850 were included in ending inventory. These goods were in transit from Baker Company to Howard Company and were sold FOB destination.
Required - Calculate correct ending inventory balance?
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