The Ontario Canoe Company has $10,000 in inventory in its warehouse. The company has goods in transit of $500 shipped from a supplier FOB shipping point. Excluded from the items counted in the warehouse is $120 in goods held on consignment for a local manufacturer. Craft's correct inventory balance is $10,500.

Question

Quizplus · Accepted Answer

The inventory balance includes the $10,000 in the warehouse, the $500 in goods in transit, and excludes the $120 held on consignment. Therefore, the correct inventory balance would be $10,380 ($10,000 + $500 - $120), which does not match the given balance of $10,500. The statement is false.

The Ontario Canoe Company Has $10,000 in Inventory in Its