Swifty Company took a physical inventory on December 31 and determined that goods costing $170,000 were on hand. Not included in the physical count were $20,000 of goods purchased from Pelzer Corporation, FOB shipping point, and $18,000 of goods sold to Alvarez Company for $26,000 FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Swifty report as its December 31 inventory

Respuesta :

Answer:

December 31 inventory = $208,000

Explanation:

Given:

Goods costing = $170,000

Goods purchased = $20,000

Goods sold = $18,000 for $26,000

Computation:

December 31 inventory = $170,000 + $20,000 + $18,000

December 31 inventory = $208,000