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Problem - On December 31, Morgan Company had an ending inventory of $64,300 based primarily on a physical count at its warehouse. In computing the final balance of Inventory, the following information was available:
(a) Inventory items with a cost of $3,080 were included in ending inventory. These goods were on consignment to Foster Company. They had not yet been sold.
(b) Inventory items with a cost of $2,310 were excluded from ending inventory. These goods were in transit from Washington Company to Morgan Company and were purchased FOB shipping point.
(c) Inventory items with a cost of $3,800 were excluded from ending inventory. These goods were in transit from Morgan Company to Anderson Company and were sold FOB destination.
Required: Using the information given above, compute the correct final balance of Inventory.
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