A company's inventory on December 31, 2024, was $247,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Inventory costing $ 12,000, shipped f.o. b. shipping point from a vendor on December 30, 2024, was received on January 5, 2025. Inventory costing $14,000, shipped f.o.b. destination from a vendor on December 28, 2024, was received on January 3, 2025. Inventory costing $70,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customer's location on January 6, 2025. Inventory costing $54,000 was being held on consignment by another company. What amount should the company report as inventory in its December 31, 2024, balance sheet? Please explain your answer in detail of why you included or excluded?

A company's inventory on December 31, 2024, was $247,000 based on a physical count priced at cost, and before any necessary adjustment for the following: Inventory costing $ 12,000, shipped f.o. b. shipping point from a vendor on December 30, 2024, was received on January 5, 2025. Inventory costing $14,000, shipped f.o.b. destination from a vendor on December 28, 2024, was received on January 3, 2025. Inventory costing $70,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customer's location on January 6, 2025. Inventory costing $54,000 was being held on consignment by another company. What amount should the company report as inventory in its December 31, 2024, balance sheet? Please explain your answer in detail of why you included or excluded?

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Description: A company's inventory on December 31, 2024, was $247,000 based on a physical countpriced at cost, and before any necessary adjustment for the following: Inventory costing $12,000, shipped f.o. b. shipping point from a vendor on December 30, 2024, wa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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A company's inventory on December 31, 2024, was $247,000 based on a physical count
priced at cost, and before any necessary adjustment for the following: Inventory costing $
12,000, shipped f.o. b. shipping point from a vendor on December 30, 2024, was received
on January 5, 2025. Inventory costing $14, 000, shipped f.o. b. destination from a vendor on
December 28, 2024, was received on January 3, 2025. Inventory costing $70,000 was
shipped to a customer f.o. b. destination on December 28, arrived at the customer's location
on January 6, 2025. Inventory costing $54,000 was being held on consignment by another
company. What amount should the company report as inventory in its December 31, 2024,
balance sheet? Please explain your answer in detail of why you included or excluded?

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