Question

Coronado Company took a physical inventory on December 31 and determined that goods costing $189,800 were on hand. Not included in the physical count were $26,130 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $23,420 of goods sold to Alvarez Company for $30,660, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Coronado report as its December 31 inventory?

Answer 1

Answer:

$239,350

Explanation:

Given:

On hand costing of goods = $189,800

Goods purchased from the Pelzer corporation = $26,130

Cost of goods sold to Alvarez Company = $23,420

Now,

The amount to be reported as December 31 inventory

= On hand costing of goods + Goods purchased from the Pelzer corporation + Cost of goods sold to Alvarez Company

= $189,800 + $26,130 + $23,420

= $239,350

Answer 2

Answer:

The amount which should Coronado report as its December 31 inventory is $239,350

Explanation:

The computation of the total amount reported by the company is shown below:

= Ending inventory on Hand + Goods purchased f.o.b shipping point + Goods sold f.o.b. destination.  

= $189,800 + $26,130 + $23,420

= $239,350

For computing the total amount, we added both the items which are given above and ignore the actual value of goods sold.