Question

The Mateo Corporationâs inventory at December 31, 2018, was $325,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on December 30, 2018, was received on January 5, 2019. Merchandise costing $22,000, shipped f.o.b. destination from a vendor on December 28, 2018, was received on January 3, 2019. Merchandise costing $38,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customerâs location on January 6, 2019. Merchandise costing $12,000 was being held on consignment by Traynor Company. What amount should Mateo Corporation report as inventory in its December 31, 2018, balance sheet?

Answer 1

Answer:

The correct answer to the following question is $405,000 .

Explanation:

Given information -

Mateo corporations inventory on 31, December 2018 - $325,000

Merchandise costing , shipped from a vendor on December 30, but was received on January 5, 2019 - $30,000

Merchandise costing, destination from a vendor on December 28, 2018, but was received on January 3, 2019 - $22,000 .

Merchandise costing, shipped to a customer on December 28, arrived at customers location on January 6, 2019 - $38,000

Merchandise costing, held on consignment by Traynor company - $12,000

Mateo corporations inventory as on 31 December 2018 -

$325,000 + $30,000 + $38,000 + $12,000

= $405,000