The Rudolph Corporation's inventory on December 31, 2021, was $325,000 based on a physical count before considering the following transactions:Merchandise costing $30,000, shipped f.o.b. shipping point from a supplier on December 30, 2021, was received by Rudolph on January 5, 2022.Merchandise costing $22,000, shipped f.o.b. destination from a supplier on December 28, 2021, was received by Rudolph on January 3, 2022.Merchandise costing $38,000 was shipped f.o.b. destination by Rudolph to a customer on December 28, 2021. The goods arrived at the customer's location on January 6, 2022.Merchandise costing $12,000 was being held on consignment by Prancer Company. This merchandise was not included in the physical count on December 31, 2021.What amount should Rudolph Corporation report as inventory in its December 31, 2021 balance sheet?Group of answer choices$367,000$427,000$405,000$325,000

Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Answered: The Rudolph Corporation's inventory on…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 48E

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The Rudolph Corporation's inventory on December 31, 2021, was $325,000 based on a physical count before considering the following transactions:

Merchandise costing $30,000, shipped f.o.b. shipping point from a supplier on December 30, 2021, was received by Rudolph on January 5, 2022.
Merchandise costing $22,000, shipped f.o.b. destination from a supplier on December 28, 2021, was received by Rudolph on January 3, 2022.
Merchandise costing $38,000 was shipped f.o.b. destination by Rudolph to a customer on December 28, 2021. The goods arrived at the customer's location on January 6, 2022.
Merchandise costing $12,000 was being held on consignment by Prancer Company. This merchandise was not included in the physical count on December 31, 2021.

What amount should Rudolph Corporation report as inventory in its December 31, 2021 balance sheet?

Group of answer choices

$367,000

$427,000

$405,000

$325,000

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