Reference no: EM132230610
Question - On Dec. 31 of the current year, Hewett Co. reported an ending inventory balance of $215,000. The following additional information is also available:
Hewett sold goods costing $38,000 to Trump Enterprises on Dec. 28 and shipped the goods on that date with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $215,000 because they were not in Hewett's warehouse.
Hewett purchased goods costing $44,000 on Dec. 29. The goods were shipped FOB destination and were received by Hewett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by Dec. 31. These goods were included in the ending inventory balance of $215,000.
Hewett's ending inventory balance of $215,000 included $15,000 of goods being held on consignment from Rumsfeld Co. (Hewett Co. is the consignee.)
Hewett's ending inventory balance of $215,000 did not include goods costing $95,000 that were shipped to Hewett on Dec. 27 with shipping terms of FOB destination and were still in transit at year-end.
Based on the above information, the correct balance for ending inventory on Dec. 31 is:
A. $194,000.
B. $209,000.
C. $200,000.
D. $171,000.
E. $156,000.