Reference no: EM132522180

Question - Orlando Store has the following balances:

On January 1, the company had an inventory of 35,000 unit of merchandise at a cost of $ 11 per unit.

On February 1, the company purchased 25,000 units of merchandises at $ 12.5 each from Brandon Corporation, FOB Shipping Point, term 3 /15, n/30.

On February 2, Orlando paid the freight cost for $ 750.

On February 8, received credits of $ 12,500 for the return of 1,000 merchandises purchased on February 1 were defective

On February 15, Paid Brandon Corporation in full, less discount

On February 20, Sold 12,500 units of merchandises for $ 15 each to Brendon Shop, term 2/10,n/30

On March 5, Sold 11,500 units of merchandises for $ 16 each to Bill Ltd, term 2/10/ n/30.

On March 7, issued a credit memo to Bill Ltd for the return of 1,500 defective merchandises.

On April 4 received payment in full from Bill Ltd.

On April 15, purchased 15,000 units of merchandises for $ 13 each from Brad Suppliers, term 3/15, n/30

On April 30, paid Brad Suppliers in full, less discount

On May 18, Sold 27,000 units of merchandises for $ 18 each to Ben Sports, term n/eom.

On May 31, received payment in full from Ben Sport

On June 1, Sold 10,000 unit of merchandises for $ 18 to Benjamin Clothes, term 2/10, n/30

On June 15, purchased 12,000 units of merchandises for $ 14 each from Brad Suppliers.

Orlando Store took a physical inventory on June 30, and determined that goods costing $ 280,000 were on hand. This is not included in the physical count of goods purchased from Brad Supplies on June 15, FOB Shipping point, and $ 120,000 of merchandises sold to Benjamin Clothes, FOB destination. Both Brad purchased and Benjamin sales were in transit at year-end. What the amount should Orlando report as its June 30 inventory?