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Question - On December 31, Russell Company had an ending inventory of $93,000 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 $2,680 were included in ending inventory. These goods were on consignment from Washington Company and had not yet been sold on December 31.
(b) Inventory items with a cost of $3,730 were excluded from ending inventory. These goods were in transit from Evans Company to Russell Company and were purchased FOB shipping point.
(c) Inventory items with a cost of $3,030 were included in ending inventory. These goods were in transit from Russell Company to Flores Company and were sold FOB destination.
Required: Using the information given above, compute the correct final balance of Inventory.
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