In an annual audit of Concord Company Limited, you find that a physical inventor

Question

In an annual audit of Concord Company Limited, you find that a physical inventory count on December 31, 2017, showed merchandise of $450,000. You also discover that the following items were excluded from the $450,000 1. Merchandise of $61,500 is held by Concord on consignment from BonBon Corporation. 2. Merchandise costing $33,400 was shipped by Concord f.o.b. destination to XYZ Ltd. on December 31, 2017. This merchandise was accepted by XYZ on January 6, 2018 3. Merchandise costing $46,100 was shipped f.o.b. shipping point to ABC Company on December 29, 2017. This merchandise was received by ABC on January 10, 2018. 4. Merchandise costing $73,000 was shipped f.o.b. destination from Wholesaler Inc. to Concord on December 30, 2017. Concord received the items on January 3, 2018. 5. Merchandise costing $50,300 was shipped by Distributor Ltd. f.o.b. shipping point on December 30, 2017, and received at Concord's office on January 2, 2018 6. Concord had excess inventory and incurred an additional $1,480 in storage costs due to delayed shipment in transaction (3) above 7. Concord incurred $2,060 for interest expense on inventory it purchased through delayed payment plans in fiscal 2017. Based on the information provided above, calculate the amount of inventory that should appear on Concord's December 31, 2017 balance sheet. Amount of inventory $

Explanation / Answer

Inventory as per Physical count 450000 Less: Inventory of Bonbon held as consignment stock -61500 Add: Goods shipped as Fob destination not yet recived by customer, XYZ 33400 Add: Good Purchasaed on FIB shipping from Distributor Ltd not received 50300 INVENTORY BALANCE TO BE SHOWN IN FINANCIALS 472200 The Amount of Inventory is $472,200

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