ending inventory

[logistic_guy]

\(\displaystyle \text{Stallman Company}\) took a physical inventory on December \(\displaystyle 31\) and determined that goods costing \(\displaystyle \$200,000\) were on hand. Not included in the physical count were \(\displaystyle \$25,000\) of goods purchased from \(\displaystyle \text{Pelzer Corporation, FOB}\) shipping point, and \(\displaystyle \$22,000\) of goods sold to \(\displaystyle \text{Alvarez Company}\) for \(\displaystyle \$30,000, \text{FOB}\) destination. Both the \(\displaystyle \text{Pelzer}\) purchase and the \(\displaystyle \text{Alvarez}\) sale were in transit at year-end. What amount should \(\displaystyle \text{Stallman}\) report as its December \(\displaystyle 31\) inventory?

 

[khansaheb]

\(\displaystyle \text{Stallman Company}\) took a physical inventory on December \(\displaystyle 31\) and determined that goods costing \(\displaystyle \$200,000\) were on hand. Not included in the physical count were \(\displaystyle \$25,000\) of goods purchased from \(\displaystyle \text{Pelzer Corporation, FOB}\) shipping point, and \(\displaystyle \$22,000\) of goods sold to \(\displaystyle \text{Alvarez Company}\) for \(\displaystyle \$30,000, \text{FOB}\) destination. Both the \(\displaystyle \text{Pelzer}\) purchase and the \(\displaystyle \text{Alvarez}\) sale were in transit at year-end. What amount should \(\displaystyle \text{Stallman}\) report as its December \(\displaystyle 31\) inventory?

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[logistic_guy]

\(\displaystyle \$200,000\) were on hand.

Inventory on hand is included in the inventory calculation. This represents the unadjusted inventory balance.