Windsor, Inc. took a physical inventory on December 31 and determined that goods costing $222,500 were on hand. Not included in the physical count were $31,000 of goods purchased from Bonita Industries, FOB, shipping point, and $25,500 of goods sold to Metlock, Inc. for $33,000, FOB destination. Both the Bonita purchase and the Metlock sale were in transit at year-end.What amount should Windsor report as its December 31 inventory?Ending Inventory $

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Asked Oct 8, 2019
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Windsor, Inc. took a physical inventory on December 31 and determined that goods costing $222,500 were on hand. Not included in the physical count were $31,000 of goods purchased from Bonita Industries, FOB, shipping point, and $25,500 of goods sold to Metlock, Inc. for $33,000, FOB destination. Both the Bonita purchase and the Metlock sale were in transit at year-end.

What amount should Windsor report as its December 31 inventory?

Ending Inventory   $
 
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Expert Answer

Step 1

Prepare Windsor’s ending i...

Amount (S)
222,500
31,000
Particulars
December 31 Inventory per physical count
Add: Goods-in-transit purchased FOB
shipping point
25,500
279.000
Add: Goods-in-transit sold FOB destination
Windsor's ending inventory
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Amount (S) 222,500 31,000 Particulars December 31 Inventory per physical count Add: Goods-in-transit purchased FOB shipping point 25,500 279.000 Add: Goods-in-transit sold FOB destination Windsor's ending inventory

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