Reference no: EM131754806

Problem - Gotham Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available:

The ending inventory balance of $412,000 included $72,000 of consigned inventory for which Gotham was the consignor.

The ending inventory balance of $412,000 included $22,000 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 ending inventory balance of $412,000 did not include goods costing $48,000 that were purchased by Gotham on December 28 and shipped FOB destination on that date. Gotham did not receive the goods until January 2 of the following year.

The ending inventory balance of $412,000 included damaged goods at their original cost of $38,000. The net realizable value of the damaged goods was $10,000.

The ending inventory balance of $412,000 included $43,000 of consigned inventory for which Gotham was the consignee. Based on this information, the correct balance for ending inventory on December 31 is:

1. $247,000.

2. $341,000.

3. $362,000.

4. $319,000.