Compute the correct final balance of inventory

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Question - On December 31, Allen Company had an ending inventory of $73,800 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 $2,660 were included in ending inventory. These goods were on consignment to Jones Company. They had not yet been sold.

(b) Inventory items with a cost of $2,000 were included in ending inventory. These goods were in transit from Gray Company to Allen Company and were purchased FOB shipping point.

(c) Inventory items with a cost of $3,560 were excluded from ending inventory. These goods were in transit from Allen Company to King Company and were sold FOB destination.

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

Reference no: EM132817767

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