Determine the correct ending inventory balance

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Question - On December 31, Powell Company had an ending inventory of $87,000 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 $3,280 were included in ending inventory. These goods were on consignment from Green Company and had not yet been sold on December 31.

(b) Inventory items with a cost of $2,030 were excluded from ending inventory. These goods were in transit from Washington Company to Powell Company and were purchased FOB shipping point.

(c) Inventory items with a cost of $3,750 were excluded from ending inventory. These goods were in transit from Morgan Company to Powell Company and were purchased FOB destination.

Required - Determine the correct ending inventory balance?

Reference no: EM132538785

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