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Farley Bains, an auditor with Nolls CPAs, is performing a review of Cullumber Company's Inventory account. Cullumber did not have a

good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at year$-$

end was $$776,390.$ However, the following information was not considered when determining that amount.

$($a$1).$ Prepare a schedule to determine the correct inventory amount. $($Show amounts that reduce inventory with a negative sign e$.$g$.-45$ or

parentheses eg$.(45).)$

Ending inventory$-$as reported

Included in the company's count were goods with a cost of $$206,570$ that the

company is holding on consignment. The goods belong to Nader Corporation.

The physical count did not include goods purchased by Cullumber with a cost

of $$39,540$ that were shipped FOB shipping point on December $28$ and did

not arrive at Cullumber'swarehouse until January $3.$

Included in the Inventory account was $$16,900$ of office supplies that were

stored in the warehouse and were to be used by the company's supervisors

and managers during the coming year.

The company received an order on December $29$ that was boxed and was

sitting on the loading dock awaiting pick$-$up on December $31.$ The shipper

picked up the goods on January $1$ and delivered them on January $6.$ The

shipping terms were FOB shipping point. The goods had a selling price of

$$43,350$ and a cost of $$26,720.$ The goods were not included in the count

because they were sitting on the dock.

Included in the count was $$46,500$ of goods that were parts for a machine

that the company no longer made. Given the high$-$tech nature of Cullumber's

products, it was unlikely that these obsolete parts had any other use.

$

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