At December 31, 2025, suppose that Whispering Company's inventory records indicated a balance of $620000. Upon further investigation it was determined that this amount included the following: ▪ $127000 in inventory purchases made by Whispering shipped from the seller on December 27, 2025 terms FOB destination, but not due to be received until January 2, 2026 ▪ $70000 in goods sold by Whispering with terms FOB destination on December 27, 2025. The goods are not expected to reach their destination until January 6, 2026 ▪ $7000 of goods received on consignment from Sandra Company What is Whispering's correct ending inventory balance at December 31, 2025? O $493000 O $486000 O $416000 O $613000 Save for Later Attempts: 0 of 1 used Submit Answer

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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.