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Question - At the end of the period, a physical inventory count of goods actually in the warehouse showed that West, Inc. had $65,000 of goods on hand. West had $24,000 of goods out on consignment with a customer (West is the consignor) and $17,000 of goods on consignment from a vendor (West is the consignee). West had a purchase order (West is the buyer) for $8,000 of inventory (FOB destination) that was still in transit. Finally, West had sold $6,500 of inventory (FOB destination) that was also still in transit. What is the correct amount of ending inventory that West should record on its books?
$86,500
$78,500
$95,500
$73,500
$65,000
$72,000
The assumptions that underlie basic CVP analysis include all of the following except:
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