On December $31,2023,$ Jen & Mink Clothing $($J&M$)$ performed the inventory count and determined the year$-$end ending inventory value to be $$76000.$ It is now January $8,2024,$ and you have been asked to double$-$check the year$-$end inventory listing. J&M uses a perpetual inventory system. Note: Only relevant items are shown on the inventory listing.

Jen & Mink Clothing

Inventory Listing

December $31,2023$

# Inventory Number Inventory Description Quantity $($units$)$ Unit Cost $($$$)$ Total Value $($$$)$

$17649$ Blue jackets $101212,121$

$210824$ Black pants $302164,832$

$......$

Total Inventory $ $76,000$

The following situations have been brought to your attention:

On January $3,2024,$ J&M received a shipment of $101$ blue jackets, for $$2,121($Item #$7649).$ The inventory was purchased December $23,2023,$ FOB destination from Global Threads. This inventory was included in J&M$$s inventory count and inventory listing.

On December $29,2023,$ J&M sold scarves $($Item #$5566)$ to a customer with a sale price of $$710$ and cost of $$505,$ FOB shipping. The order was shipped on December $30,2023.$ J&M has not included this inventory.

Red Blazers $($Item #$6193)$ were purchased and shipped from International Co$.$ on December $30,2023,$ for $$3,310,$ FOB shipping. The shipment arrived January $5,2024,$ and the appropriate party paid for the shipping charges of $$330.$ Additional costs were $$225$ for import duties and $$62$ for insurance during shipment. J&M has not included this inventory.

At year$-$end, J&M is holding $$4,832$ of black pants $($Item #$10824)$ on consignment for designer Duke Co$.$ This inventory was included in J&M$$s inventory count and inventory listing.

On December $31,2023,$ J&M shipped white shirts $($Item #$4291),$ FOB destination costing $$1,015$ to a customer. The customer was charged $$1,400$ and the customer received the goods on January $3,2024.$ J&M has not included this inventory.

Required:

$1.$ In situations $($a$)$ to $($e$)$ determine whether inventory should be included or excluded in inventory at December $31,2023.$ If the inventory should be included, determine the correct inventory cost.

$2.$ Determine the correct ending inventory value at December $31,2023.$ Starting with the unadjusted inventory value of $$76,000,$ add or subtract any errors based on your analysis in Part $1.$ Assume all items that are not shown in the inventory listing are recorded correctly.