Gotham Company reported a December 31 ending inventory balance of $413,000. The
ID: 2463283 • Letter: G
Question
Gotham Company reported a December 31 ending inventory balance of $413,000. The following additional information is also available:
The ending inventory balance of $413,000 included $72,200 of consigned inventory for which Gotham was the consignor.
The ending inventory balance of $413,000 included $22,400 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.
The ending inventory balance of $413,000 did not include goods costing $48,200 that were purchased by Gotham on December 28 and shipped FOB destination on that date. Gotham did not receive the goods until January 2 of the following year.
The ending inventory balance of $413,000 included damaged goods at their original cost of $38,400. The net realizable value of the damaged goods was $10,200.
•The ending inventory balance of $413,000 included $72,200 of consigned inventory for which Gotham was the consignor.
•The ending inventory balance of $413,000 included $22,400 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.
•The ending inventory balance of $413,000 did not include goods costing $48,200 that were purchased by Gotham on December 28 and shipped FOB destination on that date. Gotham did not receive the goods until January 2 of the following year.
•The ending inventory balance of $413,000 included damaged goods at their original cost of $38,400. The net realizable value of the damaged goods was $10,200.
• The ending inventory balance of $413,000 included $43,200 of consigned inventory for which Gotham was the consignee.Explanation / Answer
The correct balance for ending inventory on December 31 is = 413,000 - 72,200 - 22,400 + 48,200 - 38,400 + 10,200
= $338,400 ..Ans
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