The Rudolph Corporation's inventory on December 31, 2021, was $325,000 based on a physical count before considering the following transactions:Merchandise costing $30,000, shipped f.o.b. shipping point from a supplier on December 30, 2021, was received by Rudolph on January 5, 2022.Merchandise costing $22,000, shipped f.o.b. destination from a supplier on December 28, 2021, was received by Rudolph on January 3, 2022.Merchandise costing $38,000 was shipped f.o.b. destination by Rudolph to a customer on December 28, 2021. The goods arrived at the customer's location on January 6, 2022.Merchandise costing $12,000 was being held on consignment by Prancer Company. This merchandise was not included in the physical count on December 31, 2021.What amount should Rudolph Corporation report as inventory in its December 31, 2021 balance sheet?Group of answer choices$367,000$427,000$405,000$325,000

Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Answered: The Rudolph Corporation's inventory on…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 5MC: The moving average inventory cost flow assumption is applicable to which of the following inventory...

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The Rudolph Corporation's inventory on December 31, 2021, was $325,000 based on a physical count before considering the following transactions:

Merchandise costing $30,000, shipped f.o.b. shipping point from a supplier on December 30, 2021, was received by Rudolph on January 5, 2022.
Merchandise costing $22,000, shipped f.o.b. destination from a supplier on December 28, 2021, was received by Rudolph on January 3, 2022.
Merchandise costing $38,000 was shipped f.o.b. destination by Rudolph to a customer on December 28, 2021. The goods arrived at the customer's location on January 6, 2022.
Merchandise costing $12,000 was being held on consignment by Prancer Company. This merchandise was not included in the physical count on December 31, 2021.

What amount should Rudolph Corporation report as inventory in its December 31, 2021 balance sheet?

Group of answer choices

$367,000

$427,000

$405,000

$325,000

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