Lowe Company has just completed a physical inventory count at year-end on December 31, 2020.Only the items on the shelves, in storage, and in the receiving area were counted and costed on the FIFO basis.The inventory amounted to $100,000.During the audit, the independent CPA discovered the following additional information:

(a)There were goods in transit on December 31, 2020 from a supplier with terms F.O.B.

Destination costing $10,000.Because the goods had not arrived, they were excluded from the physical inventory.

(b)Lowe Company received notice from a supplier that goods ordered earlier at a cost of

$5,000 had been delivered to the trucking company, a common carrier, on December 28, 2020.The terms were F.O.B. Shipping Point.Because the shipment had not arrived on December 31, 2020, it was excluded from the physical inventory.

(c)On December 31, 2020, there were goods in transit to customers in the amount of $800,

terms F.O.B. Shipping Point.The expected delivery date was January 8, 2021.Because the goods had been shipped, they were excluded from the physical inventory.

(d)On December 31, 2020, Lowe Company shipped $2,500 worth of goods to a customer,

F.O.B. Destination.The goods were expected to arrive on January 5, 2021.Because the

goods were not on hand, they were excluded from the physical inventory.

(e)Lowe Company, the consignee, held goods on consignment for Shaw Company that cost

$3,000.Because these good were on hand as of December 31, 2020, they were included in the physical inventory.

(f)Lowe Company had placed goods that had cost $3,400 on consignment at Johnson

Company.Because the goods are not on hand, they were excluded from the physical inventory.

Required:

Analyze the information above for Lowe Company and calculate a corrected amount for the

ending inventory with explanation.