At December 31, 2014 Mohling Company\'s inventory records indicated a balance of

Question

At December 31, 2014 Mohling Company's inventory records indicated a balance of $602,000. Upon further investigation it was determined that this amount included the following: $112,000 in inventory purchases made by Mohling shipped from the seller 12/27/14 terms FOB destination, but not due to be received until January 2nd $74,000 in goods sold by Mohling with terms FOB destination on December 27* The goods are not expected to reach their destination until January 6 $6,000 of goods received on consignment from Dollywood Company What Is Mohling'8 correct ending Inventory balance at December 31, 2014? $490,000 $596,000 $410,000 $484,000

Explanation / Answer

Indicated balance of inventory $ 602,000 Less: Purchases from Mohiling $ 112,000 (As not received) Goods received on consignment $      6,000 Correct ending inventory $ 484,000

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