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Question - On December 31, Parker Company had an ending inventory of $109,900 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 $3,150 were included in ending inventory. These goods were on consignment from Barnes Company and had not yet been sold on December 31.
(b) Inventory items with a cost of $2,500 were included in ending inventory. These goods were in transit from Parker Company to Davis Company and were sold FOB shipping point.
(c) Inventory items with a cost of $3,720 were excluded from ending inventory. These goods were in transit from Ramirez Company to Parker Company and were purchased FOB destination.
Required - Using the information given above, compute the correct final balance of Inventory.
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