Question

View Policies Current Attempt in Progress Metlock, Inc. took a physical inventory on December 31 and determined that goods costing $230,000 were on hand. Not included in the physical count were $32,000 of goods purchased from Whispering Winds Corp., FOB, shipping point, and $24,500 of goods sold to Coronado Industries for $32,000, FOB destination. Both the Whispering Winds purchase and the Coronado sale were in transit at year-end. What amount should Metlock report as its December 31 inventory? $ Ending Inventory eTextbook and Media Attempts: 0 of 4 used Save for Later Submit Answer

Answer 1

Answer:

The amount should Metlock report as its December 31 inventory is $286,500.

Explanation:

Ending inventory = Phusical count + goods purchased in transit FOB shipping + cost of goods sold in transit FOB destination

                              = 230000 + 32000+ 24500

                             = $286,500

Therefore, The amount should Metlock report as its December 31 inventory is $286,500.