Yosef Corporation acquired 90% of the outstanding voting stock of Randeep Inc. on January 1, Year 6. During Year 6, intercompany sales of inventory of $45,000 (original cost of $27,000) were made. Only 20% of this inventory was still held within the consolidated entity at the end of Year 6 and was sold in Year 7. Intercompany sales of inventory of $60,000 (original cost of $33,000) occurred in Year 7. Of this merchandise, 30% had not been resold to outside parties by the end of the year.

At the end of Year 7, selected figures from the two companies' financial statements were

as follows:

Yosef Randeep

Inventory $70,000 $45,000

Retained Earning, beg. of year 500,000 300,000

Net Income 150,000 55,000

Dividends Declared 50,000 20,000

Retained Earnings, End of Year 600,000 335,000

Yosef uses the cost method to account for its investment in Randeep. Both companies pay income tax at the rate of 40%.

Required:

Assume that all intercompany sales were upstream. Calculate the amount to be reported on the Year 7 consolidated financial statements for the following accounts/item

Please calculate Consolidated Inventory with explanation