Compute the correct final balance of inventory

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Question - On December 31, Parker Company had an ending inventory of $84,900 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 $2,520 were excluded from ending inventory. These goods were on consignment from Alexander Company and had not yet been sold on December 31.

(b) Inventory items with a cost of $2,790 were excluded from ending inventory. These goods were in transit from Bennett Company to Parker Company and were purchased FOB shipping point.

(c) Inventory items with a cost of $3,290 were excluded from ending inventory. These goods were in transit from Rivera Company to Parker Company and were purchased FOB destination.

Required - Using the information given above, compute the correct final balance of Inventory.

Reference no: EM132539840

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