Waterway Industries just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $282,300. In reviewing the details of the count and related inventory transactions, you have discovered the following items that had not been considered.1. Waterway Industries has sent inventory costing $25,210 on consignment to Richfield Company. All of this inventory was at Richfield’s showrooms on December 31.2. The company did not include in the count inventory (cost, $19,380) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31.3. The company did not include in the count inventory (cost, $12,360) that was purchased with terms of FOB shipping point. The goods were in transit on December 31.Compute the correct December 31 inventory.

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Description: Waterway Industries just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $282,300. In reviewing the details of the count and related inventory

Closing stock means that amount which has company right to use the stock for any purpose on the date…

Answered: Waterway Industries just took its…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...

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Waterway Industries just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $282,300. In reviewing the details of the count and related inventory transactions, you have discovered the following items that had not been considered.

1.		Waterway Industries has sent inventory costing $25,210 on consignment to Richfield Company. All of this inventory was at Richfield’s showrooms on December 31.
2.		The company did not include in the count inventory (cost, $19,380) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31.
3.		The company did not include in the count inventory (cost, $12,360) that was purchased with terms of FOB shipping point. The goods were in transit on December 31.

Compute the correct December 31 inventory.

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