Reference no: EM132829489

Problem 1: Jones Corporation took a physical inventory count on December 31 and determined that goods costing $4,000 were on hand. This amount included $1,000 of goods held on consignment to one party. Not included in the physical count were $800 of goods purchased from another company, f.o.b. shipping point, and $400 of goods sold to another company for $600, f.o.b. destination. Both the purchase and the sale were in transit at the year end. What amount should Jones report as its December 31, inventory?