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The unadjusted inventory balance of Conway Corp. is $ 8 0 0 , 0 0 0 on December 3 1 , based on a physical

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.
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