Buffalo Company Reported a December 31 Ending Inventory Balance of $412,000.The

question 12

Multiple Choice

Buffalo Company reported a December 31 ending inventory balance of $412,000.The following additional information is also available:
-The ending inventory balance of $412,000 did not include goods costing $48,000 that were purchased by Buffalo on December 28 and shipped FOB destination on that date.Buffalo did not receive the goods until January 2 of the following year.
-The ending inventory balance of $412,000 included damaged goods at their original cost of $38,000.The net realizable value of the damaged goods was $10,000.
Based on this information,the correct balance for ending inventory on December 31 is:

• A)$374,000
• B)$384,000
• C)$460,000
• D)$422,000
• E)$438,000