On December 31, 2020, Jen & Mink Clothing (J&M) performed the inventory count and determined the year-end ending inventory value to be $78500. It is now January 8, 2021, and you have been asked to double-check the year-end inventory listing. J&M uses a perpetual inventory system. Note: Only relevant items are shown on the inventory listing. Jen & Mink clothing Inventory Listing December 31, 2020 Inventory Number Inventory Description Quantity (units) Unit Cost ($) 7649 Blue jackets 106 26 10824 Black pants 312 21 # 1 2 Total Value ($) 2,756 6,552 Total Inventory $78,500 The following situations have been brought to your attention: a. On January 3, 2021, J&M received a shipment of 106 blue jackets, for $2,756 (Item #7649). The inventory was purchased December 23, 2020, FOB destination from Global Threads. This inventory was included in J&M's inventory count and inventory listing. b. On December 29, 2020, J&M sold scarves (Item #5566) to a customer with a sale price of $760 and cost of $530, FOB shipping. The order was shipped on December 30, 2020. J&M has not included this inventory. c. Red Blazers (Item #6193) were purchased and shipped from International Co. on December 30, 2020, for $3,360, FOB shipping. The shipment arrived January 5, 2021, and the appropriate party paid for the shipping charges of $380. Additional costs were $250 for import duties and $72 for insurance during shipment. J&M has not included this inventory. d. At year-end, J&M is holding $6,552 of black pants (Item #10824) on consignment for designer Duke Co. This inventory was included in J&M's inventory count and inventory listing. e. On December 31, 2020, J&M shipped white shirts (Item #4291), FOB destination costing $1,090 to a customer. The customer was charged $1,400 and the customer received the goods on January 3, 2021. 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, 2020. If the inventory should be included, determine the correct inventory cost. (Do not leave any empty spaces; input a O wherever it is required.) Inventory Cost a. . b. C. d. e. 2. Determine the correct ending inventory value at December 31, 2020. Starting with the unadjusted inventory value of $78,500, 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. Merchandise Inventory