At December 31, 2025, suppose that Metlock Company's inventory records indicated a balance of $644000. Upon further investigation it was determined that this amount included the following: • $115000 in inventory purchases made by Metlock shipped from the seller on December 27, 2025 terms FOB destination, but not due to be received until January 2, 2026 . • $87000 in goods sold by Metlock with terms FOB destination on December 27, 2025. The goods are not expected to reach their destination until January 6, 2026 $5000 of goods received on consignment from Debra Company What is Metlock's correct ending inventory balance at December 31, 2025? . O $524000 O $639000 O $529000 O $437000

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.