Blue Spruce Ltd took a physical inventory count on December 31 and determined that goods costing $3,900 were on hand. This amount included $910 of goods held on consignment for Woods Corporation. Not included in the physical count were $630 of goods purchased from Timmons Corporation, fo.b shipping point, and $220 of goods sold to Myers Ltd. for $320, f.o.b. destination. Both the Timmons purchase and the Myers sale were in transit at year end. What amount should Blue Spruce report as its December 31 inventory?
Blue Spruce Ltd took a physical inventory count on December 31 and determined that goods costing $3,900 were on hand. This amount included $910 of goods held on consignment for Woods Corporation. Not included in the physical count were $630 of goods purchased from Timmons Corporation, fo.b shipping point, and $220 of goods sold to Myers Ltd. for $320, f.o.b. destination. Both the Timmons purchase and the Myers sale were in transit at year end. What amount should Blue Spruce report as its December 31 inventory?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.5P: Lower-of-cost-or market inventory Data on the physical inventory of Moyer Company as of December 31,...
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Blue Spruce Ltd took a physical inventory count on December 31 and determined that goods costing $3,900 were on hand. This amount included $910 of goods held on consignment for Woods Corporation. Not included in the physical count were $630 of goods purchased from Timmons Corporation, fo.b shipping point, and $220 of goods sold to Myers Ltd. for $320, f.o.b. destination. Both the Timmons purchase and the Myers sale were in transit at year end.
What amount should Blue Spruce report as its December 31 inventory?
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