For each of the following, calculate the cost of inventory reported on the balance sheet.
(a)
The total merchandise inventory counted at the end of the year was $73,000.Purchases for $5,000 are in transit under FOB shipping point terms.
(b)
The total merchandise inventory counted at the end of the year was $75,000.Purchases
for $5,000 are in transit under FOB destination terms.

Question

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The Answer of For each of the following, calculate the cost of inventory reported on the balance sheet.
(a)
The total merchandise inventory counted at the end of the year was $73,000.Purchases for $5,000 are in transit under FOB shipping point terms.
(b)
The total merchandise inventory counted at the end of the year was $75,000.Purchases
for $5,000 are in transit under FOB destination terms.

For Each of the Following, Calculate the Cost of Inventory