Nico Company ships inventory to Mila Outfit in a consignment arrangement. The arrangement specifies that Mila Outfit will attempt to sell the inventory, and in return, Nico will pay to Mila Outfit a commission of 20% of the selling price on any inventory sold. During the year, Nico ships inventory with a cost of $89,000 to Mila Outfit and pays shipping costs of $14,300. By the end of the year, $69,000 of the inventory has been sold to customers for a total of $94,000. Nico allocates $10,500 of the shipping costs to inventory sold and the other $3,800 to inventory not sold. Nico also paid advertising costs during the year of $14,500. What amount of inventory will Nico report at year end? A) $20,000 B) $43,800 C) $58,300 D) $23,800
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