Question: The following information relating to inventory is provided: Consigned inventory of $14,000 was included in the Companies physical inventory count. Goods in transit, FOB destination

The following information relating to inventory is provided:

  • Consigned inventory of $14,000 was included in the Companies physical inventory count.
  • Goods in transit, FOB destination point, of $55,000 were not included in the physical count of inventory
  • Goods in transit, FOB shipping point, of $11,000 were included in the physical inventory count.

What is the Company's ending inventory is understated by:

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