question archive The Lewis Company's inventory at December 31, 2016, 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
The Lewis Company's inventory at December 31, 2016, 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
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The Lewis Company's inventory at December 31, 2016, 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, 2019, was received on January 5, 2017.
- Merchandise costing $22,000, shipped F.o.b. destination from a vendor on December 28, 2016, was received on January 3, 2017.
- Merchandise costing $38,000 was shipped to a customer F.o.b. destination on December 28, 2016, arrived at the customer's location on January 6, 2017.
- Merchandise costing $12,000 was being held on consignment by Traynor Company.
What amount should Lewis Company report as inventory in its December 31, 2016, balance sheet?
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The answer is $405,000
| Amount | |
|---|---|
| Unadjusted Ending Inventory | $325,000 |
| Add: Purchase FOB Shipping Point - shipped Dec 30, 2016 | 30,000 |
| Add: Sale FOB Destination - received Jan 6, 2017 | 38,000 |
| Add: Consigned Goods | 12,000 |
| Adjusted Ending Inventory | $405,000 |
