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Question - Oriole Company 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 $274,600. In reviewing the details of the count and related inventory transactions, you have discovered the following items that had not been considered.
1. Oriole has sent inventory costing $25,450 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, $18,560) 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, $13,920) that was purchased with terms of FOB shipping point. The goods were in transit on December 31.
Required - Compute the correct December 31 inventory.
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