Answer:
$269,020
Step-by-step explanation:
Given that,
Cost of physical inventory on hand at December 31 = $218,000
Goods purchased from Pelzer Corporation not included = $26,960
Goods sold to Alvarez Company not included = $24,060
Pharoah report as its December 31 inventory:
= Physical inventory on hand + Goods purchased from Pelzer Corporation + Goods sold to Alvarez Company
= $218,000 + $26,960 + $24,060
= $269,020
Note:
(1) F.O.B. shipping point: Any sale or purchase of goods under the conditions of F.O.B. shipping point, then the ownership of goods transferred once the amount of goods out for transit.
(2) F.O.B. destination:
Any sale or purchase of goods under the conditions of F.O.B. destination, then the ownership of the goods transferred once the other party received the goods.