The Kwok Company\'s inventory balance on December 31, 2013, was $190,000 (based

Question

The Kwok Company's inventory balance on December 31, 2013, was $190,000 (based on a 12/31/13 physical count) before considering the following transactions:

Goods shipped to Kwok f.o.b. destination on December 20, 2013, were received on January 4, 2014. The invoice cost was $35,000.

Goods shipped to Kwok f.o.b. shipping point on December 28, 2013, were received on January 5, 2014. The invoice cost was $22,000.

Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2013, were received by the customer on January 3, 2014. The sales price was $45,000 and the merchandise cost $27,000.

Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2013, were received by the customer on December 30, 2013. The sales price was $25,000 and the merchandise cost $18,000.

Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2013, were received by the customer on January 4, 2014. The sales price was $30,000 and the merchandise cost $17,000.

The Kwok Company's inventory balance on December 31, 2013, was $190,000 (based on a 12/31/13 physical count) before considering the following transactions:

Explanation / Answer

Solution:-

Explanation:-

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Statement showing correct inventory value Particulars Amount Inventory balance before additional transactions $ 190,000 Add: Goods shipped F.O.B. shipping point, 12/28 22,000 Goods shipped F.O.B. destination, 12/27 27,000 Correct inventory balance $ 239,000

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