Carmat Co.'s December 31, 2006 inventory was valued at $400,000 before any Necessary adjustment for the following:
a.Merchandise costing $22,500 shipped FOB shipping point from a vendor on December 31, 2006, was received and recorded on January 5, 2007.
b.Goods in the shipping area were excluded from inventory, although shipment was not made until January 4, 2007. The goods billed to the customer FOB shipping point on December 30, 2006, had a cost of $30,000
Required:
What amount should Carmat report as inventory on its December 31, 2006 balance sheet? Show computation.