Answer:
The invention balance sheet as at 31 December is $923,000
Explanation:
In this question, we are asked to calculate the amount of money Beck company will report in its balance sheet as of December 31st.
To do this, we simply employ a mathematical approach.
Mathematically, the amount of inventory recorded by Beck company on its balance sheet as of December 31st would be;
Inventory in stores + Goods in consignment + Good in transit F.o.b shipping point
We identify these values as follows;
Inventory in stores = $740,000
Goods in transit f.o.b shipping point = $108,000
Goods in consignment = $75,000
The amount of inventory Beck company should record will be; $740,000 + $108,000 + $75,000 = $923,000
