Computing the final balance of inventory

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Question - On December 31, Russell Company had an ending inventory of $74,400 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 $3,210 were excluded from ending inventory. These goods were on consignment to Ward Company and had not yet been sold by December 31.

(b) Inventory items with a cost of $2,100 were excluded from ending inventory. These goods were in transit from Russell Company to Lee Company and were sold FOB shipping point.

(c) Inventory items with a cost of $3,260 were excluded from ending inventory. These goods were in transit from Collins Company to Russell Company and were purchased FOB destination.

Reference no: EM132428829

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