Bedrock Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available:
• ^The^ending^inventory^balance^of^$412,000^included^$72,000^of^consigned^inventory^for^whichBedrock was the consignor.
• ^The^ending^inventory^balance^of^$412,000^included^$22,000^of^office^supplies^that^were^storedⁱⁿthe warehouse and were to be used by the company's supervisors and managers during the coming year.
Based on this information, the correct balance for ending inventory on December 31 is:

Question

Quizplus · Accepted Answer

The correct ending inventory should exclude the consigned inventory ($72,000) and office supplies ($22,000) as they are not part of the inventory available for sale. Therefore, $412,000 - $72,000 - $22,000 = $318,000.

Bedrock Company Reported a December 31 Ending Inventory Balance of $412,000