70.7k views
5 votes
The Fortunato Corp.'s inventory at Dec 31, 2018, was $325,000 based on a physical count priced at cost, and before any necessary adjustment for the following:Merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on Dec 30, 2018, was received on Jan 5, 2019. Merchandise costing $22,000, shipped f.o.b. destination from a vendor on Dec 28, 2018, was received on Jan 3, 2019. Merchandise costing $38,000 was shipped to a customer f.o.b. destination on Dec 28, arrived at the customer's location on Jan 6, 2019. Merchandise costing $12,000 was being held on consignment by Brecht Inc.What amount should Fortunato report as inventory in its Dec 31, 2018, balance sheet

User Mikel F
by
9.2k points

1 Answer

7 votes

Answer:

$405,000

Step-by-step explanation:

The computation of the ending inventory reported is shown below:

Inventory on December 31,2018 $325,000

Add: Goods purchased from a vendor i.e shipping point $30,000

Add: Goods sold FOB destination to customer $38,000

Add: consignment by Brecht Inc $12,000

Ending inventory reported $405,000

In the above cases, the added items indicates the ownership is transferred to buyer , received by buyer and remains with the buyer

User Joel AZEMAR
by
8.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.