Reference no: EM133144409

Question - In an annual audit of Sheffield Company Limited, you find that a physical inventory count on December 31, 2020, showed merchandise of $449,000. You also discover that the following items were excluded from the $449,000.

1. Merchandise of $60,300 is held by Sheffield on consignment from BonBon Corporation.

2. Merchandise costing $33,100 was shipped by Sheffield f.o.b. destination to XYZ Ltd. on December 31, 2020. This merchandise was accepted by XYZ on January 6, 2021.

3. Merchandise costing $46,900 was shipped f.o.b. shipping point to ABC Company on December 29, 2020. This merchandise was received by ABC on January 10, 2021.

4. Merchandise costing $73,500 was shipped f.o.b. destination from Wholesaler Inc. to Sheffield on December 30, 2020. Sheffield received the items on January 3, 2021.

5. Merchandise costing $50,400 was shipped by Distributor Ltd. f.o.b. shipping point on December 30, 2020, and received at Sheffield's office on January 2, 2021.

6. Sheffield had excess inventory and incurred an additional $1,550 in storage costs due to delayed shipment in transaction (3) above.

7. Sheffield incurred $2,090 for interest expense on inventory it purchased through delayed payment plans in fiscal 2020.

Required - Based on the information provided above, calculate the amount of inventory that should appear on Sheffield's December 31, 2020 SFP.