Merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on December 30, 2021, was received on January 5, 2022.

 The Mateo Corporation’s inventory at December 31, 2021, was $325,000 based on a physical count priced at cost, and before any necessary adjustment for the following:

 

Merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on December 30, 2021, was received on January 5, 2022.
Merchandise costing $22,000, shipped f.o.b. destination from a vendor on December 28, 2021, was received on January 3, 2022.
Merchandise costing $38,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customer’s location on January 6, 2022.
Merchandise costing $12,000 was being held on consignment by Traynor Company.
 

What amount should Mateo Corporation report as inventory in its December 31, 2021, balance sheet?

Multiple Choice

$405,000.

Correct

$367,000.


$427,000.


$325,000.

Answer

$405,000.

Explanation
$325,000 + $30,000 + $38,000 + $12,000 = $405,000

 

Thanks