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 the inventory valuation 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 arrived on January $5$ of 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 shipped on December $28$ 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 December $26.$ The 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 the physical inventory count.

Required

Calculate the adjusted inventory balance on December $31.$