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Question - On December 31, Brown Company had an ending inventory of $79,000 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 $2,760 were excluded from ending inventory. These goods were on consignment from Jones Company and had not yet been sold on December 31.
(b) Inventory items with a cost of $3,380 were excluded from ending inventory. These goods were in transit from Thomas Company to Brown Company and were purchased FOB shipping point.
(c) Inventory items with a cost of $3,260 were included in ending inventory. These goods were in transit from Brown Company to Foster Company and were sold FOB destination.
What is the correct final balance of inventory?
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