Sandoval needs to determine its year-end inventory. The warehouse contains 20,000 units, of which 3,000 were damaged by flood and are not sellable. Another 2,000 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 4,000 units at a consignee's location. How many units should Sandoval include in its year-end inventory?

Question

Quizplus · Accepted Answer

Sandoval should include the 20,000 units in the warehouse minus the 3,000 damaged units, plus the 2,000 units in transit (since they are FOB shipping point, they are Sandoval's responsibility once shipped), and the 4,000 consigned units, totaling 23,000 units.

Sandoval Needs to Determine Its Year-End Inventory