Question

: As a result of a thorough physical inventory, Railway Company determined that it had inventory worth $180,000 at December 31. This count did not take into consideration the following facts: Rogers Consignment store currently has goods worth $35,000 on its sales floor that belong to Railway but are being sold on consignment by Rogers. The selling price of these goods is $50,000. Railway purchased $13,000 of goods that were shipped on December 27, FOB destination, that will be received by Railway on January 3. Determine the correct amount of inventory that Railway should report.

Answer 1

Answer:

$215,000

Explanation:

Data provided in the question

The worth of inventory = $180,000

Goods worth on its sales floor = $35,000

The selling price of the goods = $50,000

Purchase value of the goods = $13,000

So by considering the above information, the correct amount of inventory reported is

= The worth of inventory + Goods worth on its sales floor

= $180,000 + $35,000

= $215,000