Kale Wilson, an auditor with Sneed Chartered Accountants, is performing a review of Splish Companys inventory account. Splish 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 739,500. However, the following information was not considered when determining that amount.

Prepare a schedule to determine the correct inventory amount.

	Ending inventory-as reported
1.	Included in the companys count were goods with a cost of 234,500 that the company is holding on consignment. The goods belong to Superior, Ltd.
2.	The physical count did not include goods purchased by Splish with a cost of 39,000 that were shipped FOB destination on December 28 and did not arrive at Splishs warehouse until January 3.
3.	Included in the inventory account was 17,500 of office supplies that were stored in the warehouse and were to be used by the companys supervisors and managers during the coming year.
4.	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 46,000 and a cost of 31,000. The goods were not included in the count because they were sitting on the dock.
5.	Included in the count was 45,000 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Splishs products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, since that is what we paid for them, after all.
	Correct inventory