Bell Inc. took a physical inventory at the end of the year and determined that $830,000 of goods were on hand. In addition, Bell, Inc. determined that $60,000 of goods that were in transit that were shipped F.o.b. shipping point were actually received two days after the inventory count and that the company had $90,000 of goods out on consignment. What amount should Bell report as inventory at the end of the year?
A) $830,000.
B) $890,000.
C) $920,000.
D) $980,000.

Question

Quizplus · Accepted Answer

Goods in transit shipped FOB shipping point are included in the buyer's inventory once shipped, and goods out on consignment are included in the consignor's inventory, totaling $980,000 ($830,000 + $60,000 + $90,000).

Bell Inc Took a Physical Inventory at the End of the the Year