Goods shipped from kwok to a customer fob shipping point on


The Kwok Company's inventory balance on December 31, 2011, was $165,000 (based on a 12/31/11 physical count) before considering the following transactions:

1. Goods shipped to Kwok f.o.b. destination on December 20, 2011, were received on January 4, 2012. The invoice cost was $30,000.

2. Goods shipped to Kwok f.o.b. shipping point on December 28, 2011, were received on January 5, 2012. The invoice cost was $17,000.

3. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2011, were received by the customer on January 3, 2012. The sales price was $40,000 and the merchandise cost $22,000.

4. Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2011, were received by the customer on December 30, 2011. The sales price was $20,000 and the merchandise cost $13,000.

5. Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2011, were received by the customer on January 4, 2012. The sales price was $25,000 and the merchandise cost $12,000.

Required:

Determine the correct inventory amount to be reported in Kwok's 2011 balance sheet. 

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Accounting Basics: Goods shipped from kwok to a customer fob shipping point on
Reference No:- TGS01347835

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