University Bookstore took a physical inventory on December 31. You have pointed out a number of...

University Bookstore took a physical inventory on December 31. You have pointed out a number of possible problems with the count, as indicated below. Ending inventory per physical count $ 120,000 Reconciling items at year-end. Purchases in transit at December 31 FOB shipping point $ 46,680 FOB destination $ 30,970 Sales shipped and in transit at December 31 FOB shipping point $ 37,850 FOB destination $ 50,160 Consigned goods at December 31 Company is the consignor $ 34,320 Card Company is the consignee $ 62,210 What is the correct ending inventory balance on the company's balance sheet?

Solutions

Expert Solution



	Ending inventory per physical count	120,000
Adj. 1	Purchases in transit at December 31 FOB shipping point	46,680	(Goods in transit sent on fob shipping point are property of buyer)
Adj 2	Purchases in transit at December 31 FOB destination	-	(Goods in transit sent on fob destination point are property of seller)
Adj 3	Sales shipped and in transit at December 31 FOB shipping point	-	(Goods in transit sent on fob shipping point are property of buyer)
Adj 4	Sales shipped and in transit at December 31 FOB destination	50,160	(Goods in transit sent on fob destination point are property of seller)
Adj 5	Consigned goods at December 31 Company is the consignor	34,320	Consigner is the sole onwer of the goods and not consignee
Adj 6	Card Company is the consignee	(62,210)	(Deducted because they were included at the time of physical count )
	Correct Inventory balance	188,950

ekkarill92 answered 1 year ago

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