For Each of the Following,calculate the Cost of Inventory Reported

question 85

Essay

For each of the following,calculate the cost of inventory reported on the balance sheet.
a The total merchandise on hand at the end of the year as determined by taking a physical inventory is $62,000.Of the $62,000,$8,000 has been sold FOB destination and is awaiting pickup by the carrier.
b The total merchandise inventory counted at the end of the year was $63,000.Excluded from the count were purchases of $6,000 in transit under FOB shipping point terms.
c The total merchandise inventory counted at the end of the year was $75,000.Excluded from the count were purchases of $5,000 in transit under FOB destination terms.

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