Question

Sandoval needs to determine its year-end inventory. The warehouse contains 20,000 units, of which 3,000 were damaged by flood and are not sellable. Another 2,000 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 4,000 units at a consignee's location. How many units should Sandoval include in its year-end inventory?
A. 29,000
B. 21,000
C. 23,000
D. 19,000
E. 26,000

Answer 1

Answer:

C. 23,000

Explanation:

Inventory currently as the warehouse $20,000: less damaged stocks $3000.00

= $20,000.00-$3,000= $ 17,000.00

Add inventory not in the warehouse: i.e., Consignee and transits goods

=$2000 + $ 4000= $6000

Total year end inventory =  $17000+$ 6000

     =$23,000.00