Kale Wilson, an auditor with Sneed Chartered Accountants, is performing a review of Skysong Company's inventory account. Skysong

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 $740,000.$ However, the following information was not considered when determining that amount.

Prepare a schedule to determine the correct inventory amount. $($If an amount reduces the account balance then enter with a negative sign

preceding the number, e$.$g$.-15,000,$ or parenthesis e$.$g$.(15,000)).)$

Ending inventory$-$as reported

Included in the company's count were goods with a cost of $232,500$ that the company is

holding on consignment. The goods belong to Superior, Ltd$.$

The physical count did not include goods purchased by Skysong with a cost of $43,000$ that

were shipped FOB destination on December $28$ and did not arrive at Skysong's warehouse

until January $3.$

Included in the inventory account was $16,500$ 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 $48,000$ and a cost of $31,500.$ The goods were not included in the

count because they were sitting on the dock.

Included in the count was $49,500$ of goods that were parts for a machine that the company

no longer made. Given the high$-$tech nature of Skysong'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