For Each of the Following,calculate the Cost of Inventory Reported $\$ 73,000$

question 72

Essay

For each of the following,calculate the cost of inventory reported on the balance sheet.
(a) The total merchandise inventory counted at the end of the year was $\$ 73,000$ . Purchases for $\$ 5,000$ are in transit under $\mathrm { FOB }$ shipping point terms.

(b) The total merchandise inventory counted at the end of the year was $\$ 75,000$ . Purchases for $\$ 5,000$ are in transit under $\mathrm { FOB }$ destination point terms.

---

Definitions:

Cognitive Skills

Mental capabilities involved in processing information, understanding concepts, solving problems, and making decisions.

Crisis Intervention

Immediate and short-term psychological help provided to individuals or groups experiencing a potentially life-altering event, to prevent long-term psychological damage.

Ongoing Counseling

Continuous therapeutic support provided over a period of time to help individuals cope with challenges and improve their mental health.

Scheduled Component

Refers to parts or aspects of a project, maintenance, or production that are planned and executed at a specific time.