Question

Sunland Company took a physical inventory on December 31 and determined that goods costing $190,500 were on hand. Not included in the physical count were $29,000 of goods purchased from Bramble Corp., FOB, shipping point, and $22,000 of goods sold to Vaughn Manufacturing for $32,000, FOB destination. Both the Bramble purchase and the Vaughn sale were in transit at year-end.
What amount should Sunland report as its December 31 inventory?

Answer 1

Answer:

$241,500

Explanation:

Calculation for What amount should Sunland report as its December 31 inventory

December 31 inventory per physical count $190,500

Add Goods-in-transit purchased FOB shipping point $29,000

Add Goods-in-transit sold FOB destination $22,000

December 31 Inventory $241,500

($190,500 + $29,000 + $22,000 = $241,500)

Therefore What amount should Sunland report as its December 31 inventory is $241,500