Farley Bains, an auditor with Nolls CPA's is performing a review of Wild Hors Company's inventory account. Wildhorse 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 $$739,920.$ However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct inventory amount.

Ending inventory as reported $ $\_\_\_\_\_\_\_\_\_\_$

$1.$ Included in the company's count were goods with costs of $225,250$ that the company is holding on consignment. The goods belong to Nader Corporation.

$2.$ The physical count did not include goods purchased by Wildhorse with a cost of $$40,080$ that were shipped FOB shipping point on December $28$ and did not arrive at Wildhorse's warehouse until January $3.$

$3.$ Included in the inventory account was $$18,120$ of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.

$4.$ 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 $$41,350$ and a cost of $$26,970.$ The good were not included in the count because they were sitting on the dock.

$5.$ Included in the count was $$47,200$ of goods that were parts for a machine that the company no longer made. Given the high$-$tech nature of Wildhorse'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"

Correct Inventory $$\_\_\_\_\_\_\_\_\_\_\_$Farley Bains, an auditor with Nolls CPAs, is performing a review of Wildhorse Company's Inventory account. Wildhorse 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 $$793,920.$ However, the following information was not considered when determining that amount.

$($a$1)$ Prepare a schedule to determine the correct inventory amount. $($Show amounts that reduce inventory with a negative sign e$.$g$.-45$ or

parentheses e$.$g$.(45).)$

Ending inventory$-$as reported

Included in the company's count were goods with a cost of $$225,250$ that the

company is holding on consignment. The goods belong to Nader Corporation.

The physical count did not include goods purchased by Wildhorse with a cost

of $$40,080$ that were shipped FOB shipping point on December $28$ and did

not arrive at Wildhorse's warehouse until January $3.$

Included in the Inventory account was $$18,120$ of office supplies that were

stored in the warehouse and were to be used by the company's 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

$$41,350$ and a cost of $$26,970.$ The goods were not included in the count

because they were sitting on the dock.

Included in the count was $$47,200$ of goods that were parts for a machine

that the company no longer made. Given the high$-$tech nature of Wildhorse'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."

$