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Marigold Company took a physical inventory on December 31 and determined that goods costing $208,900 were...

Marigold Company took a physical inventory on December 31 and determined that goods costing $208,900 were on hand. Not included in the physical count were $23,260 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $20,450 of goods sold to Alvarez Company for $28,200, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Marigold report as its December 31 inventory?

December 31 inventory
$enter inventories at December 31 in dollars
Business   Accounting   
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Answer #1

Thus, value of inventory as on December 31 is $252,610

Goods purchases on FOB shipping point would belong to buyer once they leave seller's premises

Goods sold on FOB destination would belong to seller until the goods reaches purchaser's destination.

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