Valuation of Inventory
The inventory on hand at the end of 2016 for Reddall Company is valued at a cost of $94,550. The following items were not included in this inventory:
Purchased goods in transit, under terms FOB shipping point, invoice price $4,100, freight costs $220.
Goods out on consignment to Marlman Company, sales price $4,200, shipping costs of $250.
Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 which included $178 freight charges to deliver the goods. Goods are in transit.
Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price.
Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190.
Required:
Determine the cost of the ending inventory that Reddall should report on its December 31, 2016, balance sheet, assuming that its selling price is 140% of the cost of the inventory.