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I’m posting a homework question below. It has been posted before.

I’m posting a homework question below. It has been posted before.

I’m posting a homework question below. It has been posted before. I’d like to know if someone can walk through it with me, I can tell you what I understand and where I’m stuck.

The inventory on hand at the end of 2013 for the Reddall Company is
valued at a cost of $87,450. The following items were not included in
this inventory:

  1. Purchased goods in transit, under terms FOB shipping point, invoice price $3,700, freight costs $170.
  2. Goods out on consignment to Marlman Company, sales price $2,800, shipping costs of $210.
  3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,700, which included $251 freight charges to deliver
    the goods. Goods are in transit.
  4. Goods held on consignment by the Reddall Company at a sales price of $2,700, which included sales commission of
    20% of sales price.
  5. Purchased goods in transit, shipped FOB destination, invoice price $21,00 which included freight charges of $190.

Required:

Determine the cost of the ending inventory that Reddall should report on
its December 31, 2013 balance sheet, assuming that its selling price is
140% of the cost of the inventory.

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