Windsor, Inc. just took its physical inventory on December 31. The count of inventory items on hand at the company's business locations resulted in a total inventory cost of $326,600. In reviewing the details of the count and related inventory transactions, you have discovered the following items that had not been considered. 1.Windsor, Inc. has sent inventory costing $28,530 on consignment to Richfield Company. All of this inventory was at Richfield's showrooms on December 31. 2.The company did not include in the count inventory (cost, $18,750) 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, $13,220) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory.

Windsor, Inc. just took its physical inventory on December 31. The count of inventory items on hand at the company's business locations resulted in a total inventory cost of $326,600. In reviewing the details of the count and related inventory transactions, you have discovered the following items that had not been considered. 1.Windsor, Inc. has sent inventory costing $28,530 on consignment to Richfield Company. All of this inventory was at Richfield's showrooms on December 31. 2.The company did not include in the count inventory (cost, $18,750) 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, $13,220) that was purchased with terms of FOB shipping point. The goods were in transit on December 31. Compute the correct December 31 inventory.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

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