Question

Bramble Company took a physical inventory on December 31 and determined that goods costing $216,300 were on hand. Not included in the physical count were $22,720 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $19,770 of goods sold to Alvarez Company for $29,450, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Bramble report as its December 31 inventory?

Answer 1

Answer:

$258,790

Explanation:

Bramble report as its December 31 inventory:

= Inventory in hand as per physical count + Goods purchased from P corporation under FOB shipping basis + Cost of goods sold to A company under FOB destination basis

= $216,300 + $22,720 + $19,770

= $258,790

Therefore, the amount to be reported by Bramble company is $258,790.