Jacob, the accountant for Jonathon's Bike Manufacturing had the following data relating to inventory:

The physical count of goods in the plant, at cost, on December 31, 2020 of $1,520,000.

Included in the physical count were bicycles billed to a customer f.o.b. shipping point on December 31, 2020. These bicycles had a cost of $31,000 and were billed at $40,000. The shipment was picked up by the common carrier at 4 p.m. on December 31, 2020.

A shipment of bicycle parts were in transit from a supplier to the factory on December 31, 2020. The invoice cost was $76,000, and the goods were shipped f.o.b. shipping point on December 29, 2020.

Work in process inventory costing $30,000 was sent to an outside processor for specialty painting on December 30, 2020.

On January 3, 2021, a monthly freight bill in the amount of $8,000 was received. The bill related to merchandise purchased and on hand in December, 2020. The frieght charges had not been accrued nor included in the inventory balance.

Materials valued at $120,000, consigned by a supplier were counted in the physical inventory on December 31, 2020.

What is the value of inventory that should be reported on the balance sheet as of December 31, 2020?

Answer rating: 100% (QA)

Physical Count as on December 31 2020 Less Inventory included FOB Shipping Point Inventory received ... View the full answer