Question

Bonita Industries just took its physical inventory on December 31. The count of inventory items on hand at the company's business locations resulted in a total inventory cost of $ 325,800. In reviewing the details of the count and related inventory transactions, you have discovered the following items that had not been considered. 1. 2 Bonita has sent inventory costing $ 25,290 on consignment to Richfield Company. All of this inventory was at Richfield's showrooms on December 31. 2. The company did not include in the count inventory cost $ 19,130) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. The company did not include in the count inventory (cost , $ 12,260) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. 3. Compute the correct December 31 inventory Correct December 31 inventory $

Answer 1

To compute the correct December 31 inventory for Bonita Industries, we need to consider the items that were not included in the initial count. These include inventory sent on consignment, inventory sold but in transit, and inventory purchased but in transit. By adding the value of these items to the initial count, we can determine the correct December 31 inventory.

Step-by-step explanation:

To compute the correct December 31 inventory, we need to consider the items that were not included in the initial count.

1. Bonita sent inventory costing $25,290 on consignment to Richfield Company. Since the inventory was at Richfield's showrooms on December 31, it should be included in Bonita's inventory.
2. The company sold inventory costing $19,130 on December 28, with FOB shipping point terms. Since the goods were still in transit on December 31, they should be included in the inventory count.
3. The company also purchased inventory costing $12,260 with FOB shipping point terms. Since the goods were in transit on December 31, they should be included in the inventory count as well.

To compute the correct December 31 inventory, we add the initial count of $325,800 with the value of the items that were not considered: $25,290 + $19,130 + $12,260 = $382,480. Therefore, the correct December 31 inventory is $382,480.

Answer 2

To compute the correct December 31 inventory, you need to include inventory on consignment, goods sold but in transit, and goods purchased but in transit.

Step-by-step explanation:

To compute the correct inventory on December 31, we need to consider the items that were not included in the initial count.

1. We need to include the inventory on consignment at Richfield Company, which costs $25,290.
2. We should include the goods sold on December 28 that were in transit on December 31, which cost $19,130.
3. We need to include the goods purchased with terms of FOB shipping point that were also in transit on December 31, costing $12,260.

To calculate the correct December 31 inventory, we add the original count ($325,800) with the additional inventory items mentioned above:

Correct December 31 inventory = $325,800 + $25,290 + $19,130 + $12,260 = $382,480