Question

A company took a physical inventory at the end of the year and determined that $833,000 of goods were on hand. In addition, the following items were not included in the physical count:

Management determined that $96,000 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count)
The company sold $40,000 worth of inventory f.o.b. destination.
What amount should Bell report as inventory at the end of the year?

Answer 1

$873,000

Step-by-step explanation:

Calculation of amount of inventory reported by Bell at the end of year :

Inventory amount = $833,000 + $40,000

Inventory amount = $873,000

Therefore, the amount that Bell should report as inventory at the end of the year is $873,000.