Reference no: EM132951224
The Tucson Corporation's fiscal year ends on December 31. Tucson determines inventory quantity by a physical count of inventory on hand at the close of business on December 31.
The company's controller has asked for your help in deciding if the following items should be included in the year-end inventory count for 2019.
1. Goods purchased from a vendor shipped f.o.b. shipping point on December 24, 2019 that arrived on January 4. 2020: $100,000. Freight charges totaled $2,000.
2. Goods shipped f.o.b. shipping point on December 27, 2019 arrived at the customer's location on January 4, 2020: $150,000.
3. Goods purchased from a vendor shipped f.o.b. destination on December 27, 2019, that arrived on January 5, 2020: $220,000. Freight charges totaled $3,000.
4. Goods sold to a customer sitting on the loading dock on December 31, 2019, waiting for the customer to pick up: $170,000
6. Merchandise held on consignment on December 31, 2019, for Masterwear, Inc (consignor): $4,000
7. Goods shipped f.o.b. destination on December 29, 2019, that arrived at the customer's location on January 2, 2020: $10,000.
Required:
Problem 1: Compute the total cost of the ending inventory for Tucson Company (label and show all computations)