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Metlock Company took a physical inventory on December 31 and determined that goods costing $185,000 were on hand. Not included in the physical count were $24,080 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $20,810 of goods sold to Alvarez Company for $32,070, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Metlock report as its December 31 inventory? December 31 inventory

Metlock Company took a physical inventory on December 31 and determined that goods costing $185,000 were on hand. Not included in the physical count were $24,080 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $20,810 of goods sold to Alvarez Company for $32,070, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Metlock report as its December 31 inventory? December 31 inventory

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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Metlock Company took a physical inventory on December 31 and determined that goods costing $185,000 were on hand. Not included in the physical count were $24,080 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $20,810 of goods sold to Alvarez Company for $32,070, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Metlock report as its December 31 inventory? December 31 inventory
Transcribed Image Text:Metlock Company took a physical inventory on December 31 and determined that goods costing $185,000 were on hand. Not included in the physical count were $24,080 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $20,810 of goods sold to Alvarez Company for $32,070, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Metlock report as its December 31 inventory? December 31 inventory
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