Hasbeen Company completed its inventory count. It arrived at a total inventory value of $200,000. As a new member of Hasbeen’s accounting department, you have been given the information listed below. Discuss how this information affects the reported cost of inventory.
1. Hasbeen included in the inventory goods held on consignment for Falls Co., costing $15,000.
2. The company did not include in the count purchased goods of $10,000 which were in transit (terms: FOB shipping point).
3. The company did not include in the count sold inventory with a cost of $12,000 which was in transit (terms: FOB shipping point).