Measurement of Ending Inventory

The unadjusted inventory balance of Conway Corp. is $$800,000$ on December $31,$ based on a physical inventory count. Several items must be considered before is finalized.

On December $31,$ the physical inventory excluded $$10,000$ of merchandise inventory shipped f$.$o$.$b$.$ destination to Conway Corp. from a vendor. The inventory the following year.

On December $31,$ the physical inventory included $$1,500$ of merchandise held on consignment. The consignor is PackagingPlus Inc.

$$75,000$ of in$-$transit merchandise was shipped f$.$o$.$b$.$ shipping point to a customer and was excluded from the physical inventory count. The merchandise was $28$ and is expected to arrive at the customer's site on December $31.$

On December $31,$ the physical inventory excluded $$25,000$ of merchandise inventory held on consignment by a customer. Conway Corp. is the consignor.

Goods are in transit from a vendor to Conway Corp. on December $31.$ The invoice cost was $$40,000$ and the goods were shipped f$.$o$.$b$.$ shipping point on Decer merchandise was excluded from the physical inventory count because the merchandise had not been received.

Merchandise with a cost of $$30,000$ is held in the receiving department for return, but Conway still controls this inventory. The merchandise was excluded from count.

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