Question

Please answer 1 and 2

1. Bell Inc. took a physical inventory at the end of the year and determined that $840,000 of goods were on hand. In addition, Bell, Inc. determined that $60,000 of goods that were in transit and were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $95,000 of goods out on consignment.

What amount should Bell report as inventory at the end of the year? ______________________

2. Bell Inc. took a physical inventory at the end of the year and determined that $814,000 of goods were on hand. In addition, the following items were not included in the physical count. Bell, Inc. determined that $91,000 of goods purchased and that were in transit were shipped f.o.b. destination (goods were actually received by the company three days after the inventory count in the next accounting period).The company sold $45,000 worth of inventory f.o.b. destination that were received by the customer one day after the inventory count (in the next period).

What amount should Bell report as inventory at the end of the year? ______________________

Answer 1