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On December 31, Williams Company had an ending inventory of $60,600 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 $3,110 were excluded from ending inventory. These goods were on consignment from Washington Company and had not yet been sold on December 31.
(b) Inventory items with a cost of $3,610 were included in ending inventory. These goods were in transit from Williams Company to Rogers Company and were sold FOB shipping point.
(c) Inventory items with a cost of $2,880 were included in ending inventory. These goods were in transit from Williams Company to Phillips Company and were sold FOB destination.
Problem 1: Using the information given above, compute the correct final balance of Inventory.
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