Hello,

Can someone please explain the steps used to find the answer, I have tried a few different answers with no luck.

Waterway Company just took its physical inventory. The count of inventory items on hand at the company's business locations resulted in a total inventory cost of $260,000. In reviewing the details of the count and related inventory transactions, you have discovered the following.

1.Waterway has sent inventory costing $21,000on consignment to Alissa Company. All of this inventory was at Alissa's showrooms on December 31.

2.The company did not include in the count inventory (cost, $20,000) that was sold on December 28, terms FOB shipping point. The goods were in transit on December 31.

3.The company did not include in the count inventory (cost, $16,000) that was purchased with terms of FOB shipping point. The goods were in transit on December 31.

Compute the correct December 31 inventory.

Correct December 31 inventory - $_______

Thanks!