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
Chapter1: Financial Statements And Business Decisions
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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
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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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