Coronado Inc. took a physical inventory at the end of the year and determined that $841000 of goods were on hand. In addition, the following items were not included in the physical count. Coronado, Inc. determined that $94500 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 $41500 worth of inventory f. o. b. destination that did not reach the destination yet. What amount should Coronado report as inventory at the end of the year

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Business

Mckayla Rosales

5 June, 05:58

Coronado Inc. took a physical inventory at the end of the year and determined that $841000 of goods were on hand. In addition, the following items were not included in the physical count. Coronado, Inc. determined that $94500 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 $41500 worth of inventory f. o. b. destination that did not reach the destination yet. What amount should Coronado report as inventory at the end of the year

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Merlin · Answer 1

The amount coronado should report as inventory at the end of the year is $882500

Explanation:

As the amount of $94500 of goods purchased were in transit that were shipped, then received by the company after the inventory count thus it doesn't get count in the end of this year but it is counted in the next year inventory count thus,

Reported inventory at the end of the year = $841000 + $41500 = $882500