Compute the correct final balance of Inventory

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Question - On December 31, Sanders Company had an ending inventory of $98,900 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 $2,160 were included in ending inventory. These goods were on consignment from Lewis Company and had not yet been sold on December 31.

(b) Inventory items with a cost of $2,540 were excluded from ending inventory. These goods were in transit from Scott Company to Sanders Company and were purchased FOB shipping point.

(c) Inventory items with a cost of $3,440 were excluded from ending inventory. These goods were in transit from Henderson Company to Sanders Company and were purchased FOB destination.

Required - Using the information given above, compute the correct final balance of Inventory.

Reference no: EM132538121

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