Kari Downs, an auditor with Wheeler CPAs, is performing a review of Sheridan Company's imventory account. Sheridan did not have a Rood year, and top management is under pressure to boost reported income. According to its records, the inventory balance at yearend was $731,000. However, the following information was not considered when determining that amount. (a1) Prepare a schedule to determine the correct inventoryamount. (If an amount reduces the account balance then enter with a negative sign preceding the number, e.3. 15,000, or parenthesis e.s. (15,000). Enter 0 if there is no effect.) Ending inventory-as reported 1. Included in the company's count were goods with a cost of $241,000 that the company is holding on consignment. The goods belong to Kroeger Corporation. 2. The physical count did not inciude goods purchased by Sheridan with a cost of $38,000 that were shipped FOB destination on December 28 and did not arrive at Sheridan warehouse until January 3 . 3. Included in the inventary aceount was $7,000 of office supplies that were stored in the warehouse and were to be used by the compary's supervisors and managers during the coming year. 4. The company received an order on December 29 that was boxed and sitting on the fosding 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 Jamuary 1 and delivered them on January 6 . The shipping terms were FOB shipping point. The goods had a selling price of $42,000 and a cost of $29,000. The goods were not included in the count because they were sitting on the dock. 5. OnDecember 29 , Sheridan shipped goods witha selling price of $87,000 and a cost of $69,000 to Macchia Sales Corporation FOB shipping point. The goods arrived on Jaruary 3 . Macchia had only ordered goods with a selling price of $10,000 and a cost of $8,000. However, a sales manager at Sheridan had authorized the shipment and said that if Macchia wanted to ship the goods back next week, it could. 6. Included in the count was $35,000 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Sheridan'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?. Your answeris partialy correct Houghton Limited is trying to determine the value of its ending inventory as of February 28, 2020, the company's year-end. The following transactions occurred, and the accountant asked your help in determining whe ther they should be recorded or not: For each of the below transactions, specily whether the item in question should be included in ending inventory, and if so; at what amount. (a) On February 26. Houghton shipped goods costing $900 to a customer and charged the customer $1,125. The goods were shipped with terms FOB shipping point and the receiving report indicites that the customer received the goods on March 2 (b) On February 26, Crain Inc, shipped goods to Houghton under terms FOB shipping point. The irvvice price was $500 plus $30 for freight. The receling report indicates that the goods were received by Houghton on March 2. (c) Houghton had $780 of inventory isolated in the warehouse. The inventory is designated for a customer who has requested that the goods be shipped on March 10. (d) Also included in Houghton's warehouse is $760 of inventory that Korenic Producers shipped to Houghton on consignment. (d) Also ifcluded in Houghton's warehouse is $760 of inventory that Korenic Producers shipped to Houghton on consignment. (c) On February 26, Houghton issued a purchase order to acquire goods costing $920. The goods were shipped with terms FOB destination on February 27. Houghton recelved the goods on March 2. (f) On February 26. Houghton shipped goods to a customer under terms FOB destination. The invoice price was $440; the cost of the items was $240. The receiving report indicates that the goods were received by the customer on March 2. (g) Houghton had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $450, and Houghton had expected to sell these items for $650