Reference no: EM132038038

Question - At the end of the period, a physical inventory count of goods actually in the warehouse showed that West, Inc. had $65,000 of goods on hand. West had $24,000 of goods out on consignment with a customer (West is the consignor) and $17,000 of goods on consignment from a vendor (West is the consignee). West had a purchase order (West is the buyer) for $8,000 of inventory (FOB destination) that was still in transit. Finally, West had sold $6,500 of inventory (FOB destination) that was also still in transit. What is the correct amount of ending inventory that West should record on its books?

$86,500

$78,500

$95,500

$73,500

$65,000

$72,000