Laforge Inc. sells luxury sports vehicles. At the end of the period, a physical inventory...
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Laforge Inc. sells luxury sports vehicles. At the end of the period, a physical inventory count of goods actually in the warehouse showed that Laforge, Inc. had $65,000 of goods on hand. Part of that $65,000 included $24,000 of goods being held on consignment for a vendor. Laforge had a purchase order (Laforge is the buyer) for $8,000 of inventory (FOB shipping point) that was still in transit. Finally, Laforge had sold $6,500 of inventory (FOB shipping point) that was also still in transit. What is the correct amount of ending inventory that Laforge should record on its books?
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