The Joliet Manufacturing Company reviewed its year-end inventory and found the following items. Indicate which items should be included in the inventory balance at December 31, 2002. Give your reasons for the treatment you suggest.

(a) A packing case containing a product costing \($816\) was standing in the shipping room when the physical inventory was taken. It was not included in the inventory because it was marked "Hold for shipping instructions." The customer's order was dated December 18, but the case was shipped and the customer billed on January 10, 2003.

(b) Merchandise costing \($625\) was received on December 28, 2002, and the invoice was recorded. The invoice was in the hands of the purchasing agent; it was marked "On consignment."

(c) Merchandise received on January 6, 2003, costing \($720\) was entered in the purchase register on January 7. The invoice showed shipment was made FOB shipping point on December 31, 2002. Because it was not on hand during the inventory count, it was not included.

(d) A special machine, fabricated to order for a particular customer, was finished and in the shipping room on December 30. The customer was billed on that date and the machine was excluded from inventory although it was shipped January 4, 2003.

(e) Merchandise costing \($2,350\) was received on January 3, 2003, and the related purchase invoice was recorded January 5. The invoice showed the shipment was made on December 29, 2002, FOB destination.

(f) Merchandise costing \($1,100\) was sold on an installment basis on December 15. The customer took possession of the goods on that date. The merchandise was included in inventory because Joliet still holds legal title. Historical experience suggests that full payment on installment sales is received approximately 99% of the time.

(g) Goods costing \($1,500\) were sold and delivered on December 20. The goods were included in inventory because the sale was accompanied by a repurchase agreement requiring Joliet to buy back the inventory in February 2003.