The kwok company\'s inventory balance on December 31, 2016, was $220,000 (based

Question

The kwok company's inventory balance on December 31, 2016, was $220,000 (based on a 12/31/16 physical count) before considering the following transition ws: Goods shipped to kwor f.o.b. destination on December 20, 2016 were received on January 4, 2017. The invoice cost was $ 41,000. Goods shipped to kwok f.o.b shipping point on December 28, 2016, were received on January 5, 2017. The invoice cost was $28,000. Goods shipped from kwok to a customer f.o.b. destination on December 26, 2016, were received by the customer on January 3, 2017. The sales price was $51,000 and the cost $ 33,000. Goods shipped from kwok to a customer f.o.b. destination on December 26, 2016, were received by the customer on December 30, 2016. The sales price was $ 31,000 and the merchandise cost $ 24,000. 5. Goods shipped from kwok to a customer f.o.b. shipping point on December 28, 2016 were received by the customer on January 4, 2017. The sales price was $36,000 and the merchandise cost $23,000.

Explanation / Answer

Inventory = 220000 + 41000 -33000 - 24000 = 204000

**Goods invoiced at shipping point will continue to included in company inventory unitl customer received the goods

**Goods invoices at shipping point to company from supplier will be included only when he received the inventory .

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