Question: Widget Inc. conducted a physical inventory count on December 31 of year 3. The count revealed an inventory amount of $435,875 before any of the

Widget Inc. conducted a physical inventory count on December 31 of year 3. The count revealed an inventory amount of $435,875 before any of the following items were recorded. Inventory in the amount of $55,000 was purchased on December 27, Year 3. As of December 31, Year 3, this inventory was in transit, FOB shipping point. Inventory purchased by a customer on December 28, Year 3 was in transit as of December 31, Year 3, FOB shipping point. The inventory cost Widget $35,000. Another company had $27,000 worth of inventory on consignment.

What is the correct inventory amount reported on Widget Inc.'s December 31, Year 3 balance sheet?

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