First Bank is considering giving Moghul Company a loan. First, however, it decides that it would be a good idea to have further discussions with Moghul's accountant. One area of particular concern is the inventory account, which has a December 31 balance of $281,000. Discussions with the accountant reveal the following:
1. The physical count of the inventory did not include goods that cost $95,000 that were shipped to Moghul, FOB shipping point, on December 27 and were still in transit at year end.
2. Moghul sold goods that cost $35,000 to Novotna Company, FOB destination, on December 28. The goods are not expected to arrive at their destination in India until January 12. Th e goods were not included in the physical inventory because they were not in the warehouse.
3. Moghul sold goods that cost $49,000 to Sterling of Canada, FOB shipping point, on December 30. The goods were received by Sterling on January 8. They were not included in Moghul's physical inventory.
4. On December 31, Board Company had $30,500 of goods held on consignment for Moghul. The goods were not included in Moghul's ending inventory balance.
5. Moghul received goods that cost $28,000 on January 2. The goods were shipped FOB shipping point on December 26 by Cellar Co. The goods were not included in the physical count.
6. On January 2, Moghul received goods that cost $44,000. The goods had been shipped, FOB destination, on December 29. The shipment was a rush order that was supposed to arrive on December 31. This purchase was not included in the ending inventory of $281,000.
Instructions
Determine the correct inventory amount at December 31.