On $31$ December $205,$ Office Systems Ltd$.\text{'}$s books showed an ending inventory valuation of $$310,000.$ The accounts for $205$ have

been adjusted and closed. Subsequently, the bookkeeper prepared a schedule that showed that the inventory should be $$333,750,$

not $$294,000.$

a$.$ Merchandise in store $($at $49\%$ above cost$)$

b$.$ Merchandise purchased, in transit $($shipped FOB destination, estimated freight,

not included, $$325),$ invoice price

c$.$ Merchandise held for later shipment $($due to a difficulty finding a shipper

rather than being at the customer's request$)$ to Davis Electronics at sales $7,790$

price, $40\%$ above cost $($already billed to Davis Electronics$)$

d$.$ Merchandise out on consignment at sales price $($cost$,$ $$5,409)$

e$.$ Merchandise $($office equipment$)$ removed from the warehouse and now used in the

company's marketing office $($at cost$)$

f$.$ Merchandise out on approval, sales price $=$$$5,250,$ cost $=$$$2,100$

Income tax rate $=30\%$

Requlred:

Revlew the Items making up the IIst of Inventory. Compute the correct ending Inventory amount.

The income statement and SFP now reflect a closing inventory of $$310,000.$ List the items on the income statement and SFP for

$205$ that should be corrected for the above errors; glve the amount of the error for each Item affected.