Beck Company has inventory of $743,000 in its stores as of December 31. It also has two shipments in-transit that left the suppliers' warehouses by December 28. Both shipments are expected to arrive on January 5. The first shipment of $217,000 was sold f.o.b. destination and the second shipment of $110,000 was sold f.o.b. shipping point. Beck Company also has consigned goods of $73,000 awaiting sale with Meyer Company. What amount of inventory should Beck Company report on its balance sheet as of December 31?
A) $743,000
B) $926,000
C) $1,070,000
D) $1,143,000

Question

Quizplus · Accepted Answer

Beck Company should include the inventory in its stores ($743,000), the second shipment ($110,000) since it was sold f.o.b. shipping point, and the consigned goods ($73,000). The first shipment is not included as it was sold f.o.b. destination. Total inventory = $743,000 + $110,000 + $73,000 = $926,000.

Beck Company Has Inventory of $743,000 in Its Stores as of December