Question

Symington Corporation uses the periodic inventory system. At December 31, 20X1, the end of the company's fiscal year, a physical count of inventory revealed an ending inventory balance of $320,000. The following items were not included in the physical count: Goods held on consignment at Murphy Corporation $ 23,000 Merchandise shipped to a customer on 12/30/20X1 f.o.b. destination (merchandise arrived at customer's location on 1/3/20X2) 12,000 Merchandise shipped to a customer on 12/29/20X1 f.o.b. shipping point (merchandise arrived at customer's location on 1/2/20X2) 6,000 Merchandise purchased from a supplier, shipped f.o.b. destination on 12/29/20X1, in transit at year-end 24,000

Symington's 2018 ending inventory should be:________

Answer 1

See below

Step-by-step explanation:

With regards to the above information, Symington's 2018 ending inventory would be computed as seen below;

= Ending inventory balance at December 31, 20X1 + Goods held on consignment at Murphy corporation + Merchandize shipped to customer on 12/30 and arrived at customer' location on 1/3/2017

= $320,000 + $23,000 + $12,000

= $355,000

Therefore, Symington's 2018 ending balance should be $355,000.

Note that other given information are not relevant to the computation of the ending inventory.