Question

current attempt in progress
sheridan company took a physical inventory on december 31 and determined that goods costing $220,000 were on hand. not included in the physical count were $22,000 of goods purchased from pelzer corporation, fob shipping point, and $19,000 of goods sold to alvarez company for $27,000, fob destination. both the pelzer purchase and the alvarez sale were in transit at year - end. what amount should sheridan report as its december 31 inventory?
sheridan ending inventory $

Explanation:

Step1: Add FOB shipping point purchases

$\$220,000 + \$22,000 = \$242,000$

Step2: Add FOB destination unsold goods

$\$242,000 + \$19,000 = \$261,000$

Answer:

$\$261,000$