Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $300,500. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered.1. Wildhorse has sent inventory costing $25,600 on consignment to Richfield Company. All of this inventory was at Richfield’s showrooms on December 31.2. The company did not include in the count inventory (cost, $20,800) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31.3. The company did not include in the count inventory (cost, $18,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31.Compute the correct December 31 inventory.Correct December 31 inventory

Name: Wildhorse Co. just took its physical inventory on December 31. The cou
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $300,500. In reviewing the details of the count and related inventory transa

Lets understand the basics. When inventory sent on consignment basis then inventory needs to be…

Answered: Wildhorse Co. just took its physical…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 5PA: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Wildhorse Co. just took its physical inventory on December 31. The count of inventory items on hand at the company’s business locations resulted in a total inventory cost of $300,500. In reviewing the details of the count and related inventory transactions, you have discovered the following items had not been considered.

1.		Wildhorse has sent inventory costing $25,600 on consignment to Richfield Company. All of this inventory was at Richfield’s showrooms on December 31.
2.		The company did not include in the count inventory (cost, $20,800) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31.
3.		The company did not include in the count inventory (cost, $18,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31.

Compute the correct December 31 inventory.

Correct December 31 inventory

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions