Question

Bell Inc. took a physical inventory at the end of the year and determined that $730,000 of goods were on hand. In addition, Bell, Inc. determined that $35,000 of goods, which were shipped from their vendor as f.o.b. shipping point, were received at Bell shipping dock on January 3. Bell also had $80,000 of goods out on consignment. Lastly, included in the physical inventory was $50,000 of goods on consignment from Bell's next-door neighbor Conan Co. What amount should Bell report as inventory at the end of the year?

Answer 1

	Amount $
Physical inventory at the end of the year	730,000
Add: Shipped from their vendor as f.o.b. shipping point	35,000
Add: Goods out on consignment.	80,000
Less: Goods on consignment from Bell's next-door neighbor Conan Co	-50,000
Bell should report as inventory at the end of the year	795,000