5.

The December 31, 2016, year-end inventory balance of the Raymond Corporation is $236,000. You have been asked to review the following transactions to determine if they have been correctly recorded.

1.	Goods shipped to Raymond f.o.b. destination on December 26, 2016, were received on January 2, 2017. The invoice cost of $43,000 is included in the preliminary inventory balance.
2.	At year-end, Raymond held $27,000 of merchandise on consignment from the Harrison Company. This merchandise is included in the preliminary inventory balance.
3.	On December 29, merchandise costing $7,300 was shipped to a customer f.o.b. shipping point and arrived at the customers location on January 3, 2017. The merchandise is notincluded in the preliminary inventory balance.
4.	At year-end, Raymond had merchandise costing $28,000 on consignment with the Joclyn Corporation. The merchandise is not included in the preliminary inventory balance.

Required:

Determine the correct inventory amount to be reported in Raymonds 2016 balance sheet.

Correct inventory balance

7. Inventory records for Herb's Chemicals revealed the following:

March 1, 2016, inventory: 1,000 gallons @ $7.20 = $7,200

Purchases:		Sales:
Mar. 10	600 gals @ $7.25	Mar. 5	400 gals
Mar. 16	800 gals @ $7.30	Mar. 14	700 gals
Mar. 23	600 gals @ $7.35	Mar. 20	500 gals
		Mar. 26	700 gals

Ending inventory assuming LIFO in a periodic inventory system would be:

a. $5,040.

b. $5,055.

c. $5,075.

d. $5,135.