In the annual audit of Tricky-Dicky Ltd, you discover the following material transactions around the balance date of 31 December 2020:

Merchandise costing $50,900 was received on 3 January 2021. The invoice showed the shipment left the port on 29 December 2020 and was labelled FOB destination.

Merchandise costing $20,100 was received on 28 December 2020 marked goods on consignment.

Merchandise costing $15,700 was received on 5 January 2021 after departing on 20 December 2020. The purchase invoice reveals that it was a CIF transaction.

Merchandise costing $23,800 was on the wharf of origination at balance date. It related to a customer's order dated 16 December 2020. The goods were subsequently shipped and invoiced on 7 January 2021.

Required:

State which of the above items should be included in the inventory balance at year end and why?