Sheffield Inc. took a physical inventory at the end of the year and determined that $845000 of goods were on hand. In addition, the following items were not included in the physical count. Sheffield, Inc. determined that $95500 of goods purchased were in transit that were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count). The company sold $39500 worth of inventory f.o.b. destination that did not reach the destination yet. What amount should Sheffield report as inventory at the end of the year

Respuesta :

Answer:

$980,000

Explanation:

Calculation for What amount should Bell report as inventory at the end of the year

Goods on hand $845,000

Add Goods in transit $95,500

Add Goods out on consignment $39,500

Ending Inventory $980,000

($845,000+$95,500+$39,500)

Therefore the amount that Bell should report as inventory at the end of the year will be $980,000