Beck Company Has Inventory of $743,000 in Its Stores as of December

question 25

Multiple Choice

Beck Company has inventory of $743,000 in its stores as of December 31. It also has two shipments in-transit that left the suppliers' warehouses by December 28. Both shipments are expected to arrive on January 5. The first shipment of $217,000 was sold f.o.b. destination and the second shipment of $110,000 was sold f.o.b. shipping point. Beck Company also has consigned goods of $73,000 awaiting sale with Meyer Company. What amount of inventory should Beck Company report on its balance sheet as of December 31?

• A) $743,000
• B) $926,000
• C) $1,070,000
• D) $1,143,000

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Definitions:

Search-And-Rescue

Operations or missions tasked with locating and providing aid to people who are in distress or imminent danger.

True Altruism

The act of helping others without expecting any benefits in return, purely driven by the desire to benefit someone else.

Reciprocity Principle

A social norm suggesting that people should return the favor or kindness that others have shown to them.

Egalitarian Principle

The belief in the equality of all people, particularly in political, social, or economic life.