At December 31, 2016, Jefferson, Inc

question 89

Essay

At December 31, 2016, Jefferson, Inc. had inventory on hand amounting to $270,000. The following items were not
included in this inventory:
∙ Goods sold and still in transit, shipped Dec. 29 FOB destination, sales price $12,000, freight costs $500.
∙ Goods held by Johnson on consignment from Miller Company, sales price $12,500, shipping costs $300.
∙ Goods returned by customers and held pending inspection, cost $1,100.
On Jan. 1, 2017, a monthly freight bill for $1,600 was received. The bill specifically related
∙ to merchandise purchased in December 2016, 40 percent of which was sold in December.
No related adjustment had yet been made.
Jefferson sells at a gross profit of 25% on cost.
Required:
Compute the cost of ending inventory to be reported on Jefferson's December 31, 2016, balance sheet.

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Definitions:

African-Americans

An ethnic or racial group in the U.S. that has heritage from any of the African black racial groups.

Labor Movement

A social and economic campaign advocating for workers' rights and interests, including better pay, working conditions, and hours.

Hysteria

A psychological disorder characterized by extreme emotional reactions and symptoms such as conversion disorder, now understood in more nuanced and specific terms.

Union Boycotts

Actions taken by labor unions to refuse to buy, sell or handle products from a company to protest against its policies or to demand better working conditions.