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Question - On December 31, Henderson Company had an ending inventory of $59,600 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 $3,130 were included in ending inventory. These goods were on consignment from Richardson Company and had not yet been sold on December 31.
(b) Inventory items with a cost of $3,550 were excluded from ending inventory. These goods were in transit from Henderson Company to Miller Company and were sold FOB shipping point.
(c) Inventory items with a cost of $3,440 were excluded from ending inventory. These goods were in transit from Hill Company to Henderson Company and were purchased FOB destination.
Required: Using the information given above, compute the correct final balance of Inventory.
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