Question - Neverwas Company just took its physical inventory on December 31, 2010. The count of inventory items at the company's warehouse resulted in a total inventory of $300,000. In reviewing the details of the count and the related inventory transactions, you discovered the following:
1. Neverwas sent inventory costing $26,000 on consignment to Niagara Company on December 24, 2010. All of this inventory was in Niagara Company's showroom on December 31, 2010.
2. The company had goods in transit to a customer in Cleveland, Ohio on December 21, 2010. The goods cost $20,000 and were shipped FOB destination on December 15, 2010.
3. The company received on January 2, 2011, from supplier. The goods were in transit at December 31, 2010. The goods cost $17,000 and were shipped FOB shipping point on December 5, 2010.
Compute the correct December 31 balance in ending inventory (no entires required).