Anthony Walker, an auditor with Knapp CPAS, is performing a review of Sunland Company's inventory account. Sunland did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was $622,000. However, the following information was not considered when determining that amount. Included in the company's count were goods with a cost of $189,000 that the company is holding on consignment. The goods belong to 1. Agler Corporation. The physical count did not include goods purchased by Sunland with a cost of $40,800 that were shipped FOB shipping point on December 2. 28 and did not arrive at Sunland's warehouse until January 3. Included in the inventory account was $21,500 of office supplies that were stored in the warehouse and were to be used by the company's 3. supervisors and managers during the coming year. The company received an order on December 29 that was boxed and was sitting on the loading dock awaiting pick-up on December 31. The shipper picked up the goods on January 1 and delivered them on January 6. The shipping terms were FOB shipping point. The goods had a selling price of $40,800 and a cost of $30,600. The goods were not included in the count because they were sitting on the dock. 4. On December 29, Sunland shipped goods with a selling price of $86,400 and a cost of $67,200 to Central Sales Corporation FOB shipping point. The goods arrived on January 3. Central Sales had only ordered goods with a selling price of $9,100 and a cost of $7,280. However, a 5. sales manager at Sunland had authorized the shipment and said that if Central wanted to ship the goods back next week, it could. Included in the count was $45,800 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of 6. Sunland's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, "since that is what we paid for them, after all." Prepare a schedule to determine the correct inventory amount. Ending inventory-as reported 622,000 Less : Goods belong to Agler Corporation 1. 189,000 Add : Goods belong to Sunland as soon as they are shipped 2. 40,800 Less +: Offce supplies should be carried in a separate account i 3. 21,500 Add +: 4. 30,600 Goods belong to Sunland until they are shipped Add : Goods shipped to Central Sales corporation FOB shipping point 5. 7,280 Less +: Goods that were parts for a machine that the company no longer made + 6. 45,800 Correct inventory 504300