Reference no: EM132721173

The Kwok Company's inventory balance on December 31, 2021, was $175,000 (based on a 12/31/2021 physical count) before considering the following transactions:

1. Goods shipped to Kwok f.o.b. destination on December 20, 2021, were received on January 4, 2022. The invoice cost was $32,000.

2. Goods shipped to Kwok f.o.b. shipping point on December 28, 2021, were received on January 5, 2022. The invoice cost was $19,000.

3. Goods shipped from Kwok to a customer f.o.b. destination on December 27, 2021, were received by the customer on January 3, 2022. The sales price was $42,000 and the merchandise cost $24,000.

4. Goods shipped from Kwok to a customer f.o.b. destination on December 26, 2021, were received by the customer on December 30, 2021. The sales price was $22,000 and the merchandise cost $15,000

5. Goods shipped from Kwok to a customer f.o.b. shipping point on December 28, 2021, were received by the customer on January 4, eBook 2022. The sales price was $27,000 and the merchandise cost $14,000.

Required:

Problem 1: Determine the correct inventory amount to be reported in Kwok's 2021 balance sheet.