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Question - On December 31, Brooks Company had an ending inventory of $114,200 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 $2,330 were included in ending inventory. These goods were on consignment to Phillips Company. They had not yet been sold.
(b) Inventory items with a cost of $3,830 were excluded from ending inventory. These goods were in transit from Green Company to Brooks Company and were purchased FOB shipping point.
(c) Inventory items with a cost of $2,260 were included in ending inventory. These goods were in transit from Brooks Company to Russell Company and were sold FOB destination.
Required - Using the information given above, compute the correct final balance of Inventory.
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