Current Attempt in Progress In your audit of Michael Jones Company, you find that a physical inventory on December 31, 2020, showed merchandise with a cost of $427,060 was on hand at that date. You also discover the following items were all excluded from the $427,060. 1. 2. 3. 4. 5. Merchandise of $58,470 which is held by Jones on consignment. The consignor is the Max Suzuki Company. Merchandise costing $35,530 which was shipped by Jones fo.b. destination to a customer on December 31, 2020. The customer was expected to receive the merchandise on January 6, 2021. Merchandise costing $46,250 which was shipped by Jones f.o.b. shipping point to a customer on December 29, 2020. The customer was scheduled to receive the merchandise on January 2, 2021. Merchandise costing $82,500 shipped by a vendor fo.b. destination on December 30, 2020, and received by Jones on January 4,2021. Merchandise costing $55,170 shipped by a vendor f.o.b. shipping point on December 31, 2020, and received by Jones on January 5, 2021. Based on the above information, calculate the amount that should appear on Jones's balance sheet at December 31, 2020, for inventory. Inventory as on December 31, 2020

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…