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Bramble Company just took its physical inventory. The count of inventory items on hand at the company's business locations resulted in a total inventory cost of $280,000. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered. 1. Bramble has sent inventory costing $26,000 on consignment to Alissa Company. All of this inventory was at Alissa's showrooms on December 31. 2. The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. 3. The company did not include in the count inventory (cost, $12,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory. Correct December 31 inventory %24

Bramble Company just took its physical inventory. The count of inventory items on hand at the company's business locations resulted in a total inventory cost of $280,000. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered. 1. Bramble has sent inventory costing $26,000 on consignment to Alissa Company. All of this inventory was at Alissa's showrooms on December 31. 2. The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. 3. The company did not include in the count inventory (cost, $12,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory. Correct December 31 inventory %24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 2 of 5 0/4 O Your answer is incorrect. Bramble Company just took its physical inventory. The count of inventory items on hand at the company's business locations resulted in a total inventory cost of $280,000. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered. 1. Bramble has sent inventory costing $26,000 on consignment to Alissa Company. All of this inventory was at Alissa's showrooms on December 31. 2. The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. 3. The company did not include in the count inventory (cost, $12,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory. Correct December 31 inventory eTextbook and Media Save for Later Attempts: unlimited Submit Answer 2 Type here to search 64 F Clear 7424Tai716 %24
Transcribed Image Text:Question 2 of 5 0/4 O Your answer is incorrect. Bramble Company just took its physical inventory. The count of inventory items on hand at the company's business locations resulted in a total inventory cost of $280,000. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered. 1. Bramble has sent inventory costing $26,000 on consignment to Alissa Company. All of this inventory was at Alissa's showrooms on December 31. 2. The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31. 3. The company did not include in the count inventory (cost, $12,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory. Correct December 31 inventory eTextbook and Media Save for Later Attempts: unlimited Submit Answer 2 Type here to search 64 F Clear 7424Tai716 %24
Expert Solution
Step 1

Inventory is:

  • An asset
  • Used to generate revenue or has a monetary worth, or
  • An asset that is in the process of being developed yet is intended for market sale.

Inventory includes:

  • Raw material
  • Work in process
  • Finished goods

 

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