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

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…