Determining Merchandise to Be Included or Excluded from Ending Inventory

The unadjusted inventory balance of Ultim Corp. is $$180,000$ on December $31$ based on a physical inventory count. The following items must be considered before the inventory valuation is finalized.

a$.$ On December $31,$ the physical inventory excluded $$450$ of merchandise inventory set aside for expected shipment to a customer.

b$.$ On December $31,$ the physical inventory excluded $$1,800$ of merchandise inventory out on consignment in a customer$$s showroom.

c$.$ On December $31,$ the physical inventory excluded $$1,440$ of merchandise held on consignment.

d$.$ In$-$transit merchandise of $$1,350$ was shipped f$.$o$.$b$.$ destination to a customer and was excluded from the physical inventory count. The merchandise was turned over to a common carrier on December $28$ and is delivered to the customer on December $31.$

e$.$ Ultim Corp. ordered $$1,440$ of merchandise on December $26.$ The merchandise was shipped to Ultim Corp. f$.$o$.$b$.$ shipping point on December $30$ and was expected to arrive January $2$ of next year. The merchandise was not included in the physical inventory count.

f$.$ A return to a vendor of merchandise for $$1,800$ was in transit on December $31$ and was excluded from the physical inventory count. The merchandise was shipped f$.$o$.$b$.$ shipping point on December $30.$

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Required

Review items a through f and determine the adjusted inventory balance for year$-$end December $31.$