Luke and Leia own a light saber shop. At December 31st they show an inventory balance of $200,000. However, the following information was not considered: $40,000 of light sabers on consignment to Tatooine Treasures. $20,000 of light sabers that were purchased from Jedi Knights on December 26th that were still in transit at year-end. Shipping terms are FOB Destination. $30,000 of light sabers that were purchased from Bantha Boutique on December 28th that were still in transit at year-end. Shipping terms are FOB Shipping Point. 50 light sabers are found to be damaged but still sellable. These 50 light sabers are currently not included in the year-end balance. These light sabers had a cost of $12,500 but are expected to sell at a reduced amount totaling $6,000. What is the correct year-end inventory balance? Group of answer choices $282,500 $266,000 $302,500 $276,000
Luke and Leia own a light saber shop. At December 31st they show an inventory balance of $200,000. However, the following information was not considered: $40,000 of light sabers on consignment to Tatooine Treasures. $20,000 of light sabers that were purchased from Jedi Knights on December 26th that were still in transit at year-end. Shipping terms are FOB Destination. $30,000 of light sabers that were purchased from Bantha Boutique on December 28th that were still in transit at year-end. Shipping terms are FOB Shipping Point. 50 light sabers are found to be damaged but still sellable. These 50 light sabers are currently not included in the year-end balance. These light sabers had a cost of $12,500 but are expected to sell at a reduced amount totaling $6,000. What is the correct year-end inventory balance? Group of answer choices $282,500 $266,000 $302,500 $276,000
Chapter1: Financial Statements And Business Decisions
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Luke and Leia own a light saber shop. At December 31st they show an inventory balance of $200,000. However, the following information was not considered:
- $40,000 of light sabers on consignment to Tatooine Treasures.
- $20,000 of light sabers that were purchased from Jedi Knights on December 26th that were still in transit at year-end. Shipping terms are FOB Destination.
- $30,000 of light sabers that were purchased from Bantha Boutique on December 28th that were still in transit at year-end. Shipping terms are FOB Shipping Point.
- 50 light sabers are found to be damaged but still sellable. These 50 light sabers are currently not included in the year-end balance. These light sabers had a cost of $12,500 but are expected to sell at a reduced amount totaling $6,000.
What is the correct year-end inventory balance?
Group of answer choices
$282,500
$266,000
$302,500
$276,000
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