Reference no: EM133089844

Question - The December 31, 2021, year-end inventory balance of the Wildcat Corporation is $250,000.

As their accountant, you have been asked to review the following transactions to determine if the company has correctly recorded inventory.

1. Goods shipped to Wildcat f.o.b. destination on December 26, 2021, were received on January 2, 2022. The invoice cost of $50,000 is included in the preliminary inventory balance.

2. At year-end, Wildcat held $34,000 of merchandise on consignment from the Ute Company. This merchandise is included in the preliminary inventory balance.

3. On December 29, merchandise costing $8,000 was shipped to a customer f.o.b. shipping point and arrived at the customer's location on January 3, 2022. The merchandise is not included in the preliminary inventory balance.

4. At year-end, Wildcat had merchandise costing $35,000 on consignment with the SLC Corporation. The merchandise is not included in the preliminary inventory balance.

Required - Determine the correct inventory amount to be reported in Wildcat's 2021 balance sheet.