Farley Bains, an auditor with Nolls CPAs, is performing a review of Pharaoh Company's Inventory account. Pharaoh did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at yearend was $$722,410.$ 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 $$244,500$ that the company is holding on consignment. The goods belong to Nader Corporation.

The physical count did not include goods purchased by Pharaoh with a cost of $$37,230$ that were shipped FOB shipping point on December $28$ and did not arrive at Pharaoh's warehouse until January $3.$

Included in the Inventory account was $$15,330$ 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 $$41,650$ and a cost of $$29,710.$ The goods were not included in the count because they were sitting on the dock.

Included in the count was $$54,700$ of goods that were parts for a machine that the company no longer made. Given the high$-$tech nature of Pharaoh'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