Question

Stansbury Company determined its December 31, 2015 inventory to be $1,000,000 based on a physical count priced at cost. Additional information for the company is as follows: Merchandise costing $90,000 was shipped FOB shipping point from a vendor on December 30, 2015. This merchandise was received and recorded on January 5, 2016. Goods costing $120,000 were staged on the shipping dock and excluded from inventory although shipment was not made until January 4, 2016. The goods were billed to the customer FOB shipping point on December 30, 2015. What is Stansbury's ending inventory for its December 31, 2015 balance sheet

Answer 1

Answer:

$1,210,000

Explanation:

Calculation to determine Stansbury's ending inventory for its December 31, 2015 balance sheet

December 31, 2015 inventory to be $1,000,000

Add Merchandise costing $90,000

Add Goods costing $120,000

Ending Inventory $1,210,000

($1,000,000+$90,000+$120,000)

Therefore Stansbury's ending inventory for its December 31, 2015 balance sheet will be $1,210,000