Answer:
<em>E. $319,000</em>
Explanation:
Begin with an inventory, starting at $412,000.
That data was dealt with properly in the first bullet point, since inventory should also include relegated items in which the consignor is the subject company. Few changes.
In regard to the second point of the bullet, the inventory shouldn't include the office equipment kept for further use. Minus $22,000.
The details throughout the third bullet point was dealt with properly as inventory must not contain items delivered to FOB destination which the buyer has not yet received.
As for the fourth bullet point, unless the net realizable value is significantly below cost, damaged goods should not be included in the inventory at their original cost.
Deduct $28,000 ($38,000-$ 10,000).
In regard to the fifth bullet point, inventory can not include the value of the consigned stock for which the consignor is the subject company.
<em>Deduct $43,000. And inventory finishing should be $412,000-$ 22,000-$ 28,000-$ 43,000 = $319,000.</em>
