Valuation of Inventory The inventory on hand at the end of 2019 forReddall Company is valued at a cost of $94,550. The following items werenot included in this inventory:1. Purchased goods in transit, under terms FOB shipping point,invoice price $4,100, freight costs $220.2. Goods out on consignment to Madman Company, sales price$4,200, shipping costs of $250.3. Goods sold to Grina Co. under terms FOB destination, invoicedfor $1,900 which included $178 freight charges to deliver the goods.Goods are in transit.4. Goods held on consignment by Reddall at a sales price of $2,700which included sales commission of 20% of sales price.5. Purchased goods in transit, shipped FOB destination, invoiceprice $2,100 which included freight charges of $190.Required: Determine the cost of the ending inventory that Reddall should reporton its December 31, 2019, balance sheet, assuming that its selling priceis 140% of the cost of the inventory.
Reddall Company is valued at a cost of $94,550. The following items were
not included in this inventory:
1. Purchased goods in transit, under terms FOB shipping point,
invoice price $4,100, freight costs $220.
2. Goods out on consignment to Madman Company, sales price
$4,200, shipping costs of $250.
3. Goods sold to Grina Co. under terms FOB destination, invoiced
for $1,900 which included $178 freight charges to deliver the goods.
Goods are in transit.
4. Goods held on consignment by Reddall at a sales price of $2,700
which included sales commission of 20% of sales price.
5. Purchased goods in transit, shipped FOB destination, invoice
price $2,100 which included freight charges of $190.
Required:
Determine the cost of the ending inventory that Reddall should report
on its December 31, 2019,
is 140% of the cost of the inventory.
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