Computing the final balance of inventory

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On December 31, Phillips Company had an ending inventory of $114,500 based primarily on a physical count at its warehouse. In computing the final balance of Inventory, the following information was available:

Problem (a) Inventory items with a cost of $3,300 were excluded from ending inventory. These goods were on consignment to Bennett Company and had not yet been sold by December 31.

Problem (b) Inventory items with a cost of $3,820 were included in ending inventory. These goods were in transit from Phillips Company to Jenkins Company and were sold FOB shipping point.

Problem (c) Inventory items with a cost of $3,110 were excluded from ending inventory. These goods were in transit from Johnson Company to Phillips Company and were purchased FOB destination.

Reference no: EM132461065

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