Kari Downs, an auditor with Wheeler CPAs, is performing a review of Crane Company's inventory account. Crane did not have a goo

year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year$-$end $w$

$$730,000.$ However, the following information was not considered when determining that amount.

$($a$1)$ Prepare a schedule to determine the correct inventory amount. $($If an amount reduces the account balance then enter with a negativ

sign preceding the number, e$.$g$.-15,000,$ or parenthesis e$.$g$.).$ Enter $0$ if there is no effect.$)$

Ending inventory$-$as reported

Included in the company's count were goods with a cost of $$240,000$ that the company is

holding on consignment. The goods belong to Kroeger Corporation.

The physical count did not include goods purchased by Crane with a cost of $$30,000$ that

were shipped FOB destination on December $28$ and did not arrive at Crane warehouse

until January $3.$

Included in the inventory account was $$4,000$ 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 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 $$30,000$ and a cost of $$18,000.$ The goods were not

included in the count because they were sitting on the dock.

On December $29,$ Crane shipped goods with a selling price of $$70,000$ and a cost of

$$50,000$ to Macchia Sales Corporation FOB shipping point. The goods arrived on January

Macchia had only ordered goods with a selling price of $$10,000$ and a cost of $$8,000.$

However, a sales manager at Crane had authorized the shipment and said that if Macchia

wanted to ship the goods back next week, it could.

Included in the count was $$30,000$ of goods that were parts for a machine that the

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