Gamma Company completed a physical count of inventory at December 31, 2019 and reported $325,000 of ending inventory at cost. Upon further review, Gamma noted that: · Merchandise costing $20,000 shipped FOB shipping point from a vendor on 12/31/19 was received in the warehouse on 1/5/20 and was not included in the calculation of inventory as of 12/31/2019. · Merchandise costing $27,000 shipped FOB destination from a vendor on 12/28/19 was received on 1/3/20 and was not included in the calculation of inventory as of 12/31/2019. · Merchandise costing $32,000 was shipped to a customer FOB destination on 12/28/19. It arrived at the customer on 1/6/20 and was not included in the calculation of inventory as of 12/31/2019. · Merchandise costing $11,000 was out of the warehouse and held on consignment by Beach Company. It and was not included in the calculation of inventory as of 12/31/2019. What amount should Gamma Company report as inventory on its December 31, 2019, Balance Sheet?

Answer rating: 100% (QA)

To determine the correct amount of inventory that Gamma Company should report on its December 31 201... View the full answer