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. Included in the items counted in the warehouse is $120 in goods held on consignment from a local manufacturer. Craft's correct inventory balance is $10,500.

Question

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The correct inventory balance is $10,500, which includes the $10,000 in inventory in the warehouse, the $500 in goods in transit, and excludes the $120 in goods held on consignment.

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