Gary Kifer, an auditor with Neely CPAs, is performing a review ofFlounderInc.'s inventory account as at December 31.Flounderdid not have a good year, and top management is under pressure to boost reported net income. According to its inventory count, the inventory balance at year-end was $757,000. However, the following information was not considered when determining that amount.

1.Included in the company's count were goods with a cost of $229,000that the company is holding on consignment. The goods belong to Anya Corporation.2.The physical count did not include goods purchased byFlounderwith a cost of $39,000that were shipped FOB shipping point on December 28 and did not arrive atFlounder's warehouse until January 3.3.Included in the inventory account was $16,000of 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 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 $44,000and a cost of $26,000. The goods were not included in the count because they were sitting on the dock but the sale was not recorded in the records.5.On December 29,Floundershipped goods with a selling price of $83,000and a cost of $45,000to Shawnee Sales Corporation FOB shipping point. The goods arrived on January 3. Shawnee Sales had only ordered goods with a selling price of $10,000and a cost of $6,000. However, a sales manager atFlounderhad authorized the shipment and said that if Shawnee wanted to ship the goods back next week, it could.

6.Included in the count was $55,000of goods that were parts for a machine that the company no longer sold. Given the high-tech nature ofFlounder'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." The parts have a net realizable value of zero.

schedule to determine the correct inventory count amount.(If an amount reduces the account balance then enter with negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Ending inventory - as reported$Goods belonging to Anya Corporation held on consignmentGoods shipped FOB on December 28 and did not arrive atFlounder's warehouse until January 3Office supplies stored in the warehouse and were to be used by the company's supervisors and managersGoods belonging toFloundersitting on the loading dock awaiting pick-up on December 31Goods shipped byFlounderin absence of SalesObsolete goods that were parts for machine that the company no longer madeCorrected inventory$