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On December 31, Edwards Company had an ending inventory of $83,900 based primarily on a physical count at its warehouse. In computing the final balance of Inventory, the following information was available:
Point (a) Inventory items with a cost of $2,010 were excluded from ending inventory. These goods were on consignment from Wood Company and had not yet been sold on December 31.
Point (b) Inventory items with a cost of $3,840 were excluded from ending inventory. These goods were in transit from Simmons Company to Edwards Company and were purchased FOB shipping point.
Point (c) Inventory items with a cost of $3,440 were excluded from ending inventory. These goods were in transit from Edwards Company to Rogers Company and were sold FOB destination.
Required:
Question 1: Using the information given above, compute the correct final balance of Inventory.
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