Forever Young Game Stores (FYG)has Taken a Physical Count of Its

Essay

Forever Young Game Stores (FYG)has taken a physical count of its inventory at March 31,its fiscal year-end.After reviewing the accounting records and documentation,the following items have been discovered:
(a)An invoice from Shreck Co.indicates that $30,000 of games were shipped to FYG on March 27,terms FOB shipping point.The games and invoice did not arrive at FYG until April 2 and were not included in the physical count.
(b)An invoice from Gamers,Inc.indicates that $8,000 of games were shipped to FYG on March 29,terms FOB destination.The games and invoice did not arrive at FYG until April 2 and were not included in the physical count.
The physical count and cost assignment on March 31 prior to these two items is $440,000.The cost of goods sold for FYG is $2,100,000.
1.Calculate the amount that should be reported as ending inventory for FYG.
2.Calculate the days' sales in inventory before and after the appropriate adjustments for inventory.