Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at the end of the period, a physical inventory cou

At the end of the period, a physical inventory count of goods actually in the warehouse...

Free

50.1K

Verified Solution

Question

Accounting

At the end of the period, a physical inventory count of goodsactually in the warehouse showed that West, Inc. had $65,000 ofgoods on hand.West had $24,000 of goods out on consignment with acustomer (West is the consignor) and $17,000 of goods onconsignment from a vendor (West is the consignee). West had apurchase order (West is the buyer) for$8,000 of inventory (FOBdestination) that was still in transit.Finally, West had sold$6,500 of inventory (FOB destination) that was also still intransit. What is the correct amount of ending inventory that Westshould record on its books?

$65,000

$72,000

$73,500

$78,500

$95,500

$86,500


Please explain how you reached the amount

Answer & Explanation Solved by verified expert
4.1 Ratings (565 Votes)

Answer: 73500 $

Calculation of Ending Inventory

                                                                                   (Amounts in $)

Goods in Hand                                                               65000 $

Add: Goods out on Consignment with a Customer      24000 $

Purchase (Goods in Transit)                                            8000 $

Less: Sold out of Transit                                              (6500 $)

Goods on Consignment from a vendor                         (17000 $)

Amount of Ending Inventory                                        73500 $                    
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

6 Consider a body shown in figure consisting two identical balls each of mass M...

Physics
1.2K views

Given: G = 6.67259 x 10- Nm/kg.A 1220 kg geosynchronous satellite orbits a planet similar...

Physics
1.2K views

In the following circuit of PN junction diodes D D2 and D3 are ideal then...

Basic Math
1.2K views

14 Prime factorization 16 Convert decimal to 20 30 40 83 17 0 1 54...

Basic Math
1.2K views

Convert the area of 541 square meters to square feet. Include the acres-hectare conversion factor....

Basic Math
1.2K views

The diameter of a standard basketball is 9.5 inches. If the basketballs are covered in...

Calculus
1.2K views

Evaluate eBu 4u du S Bu 4u du Type an exact answer

Calculus
1.2K views

7900 dollars is placed in an account with an annual interest rate of 5.5%. How...

Algebra
1.2K views

Choose the graph of y log 5 O O O K 77 166 s 30

Accounting
1.2K views

John and Wilbur form White Corporation on May 3 of the current year. What is...

Accounting
1.2K views

Partnership Activities. (Obj. 2) Indicate how each of the following items is reported on the...

Accounting
1.2K views

Can u answer in terms of using excel, and showing how u get it! ...