On December 31, 2023, Jen & Mink Clothing (J&M) performed the inventory count and determined the year-end ending inventory value to be $82500. 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 & Hink Clothing

Inventory Listing December 31, 2025

Inventory Number

Inventory Description

314

Unit Cost ($)

Total Value (5)

7649

Blue Jackets Black pants

34

3,876

9,512

10524

Total Inventory $82,500

25

The following situations have been brought to your attention

a. On January 3, 2024, J&M received a shipment of 114 blue jackets, for $3,876 (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

b. On December 29, 2023 J&M sold scarves (tem #5566) to a customer with a safe price of $940 and cost of $570 FOB shipping The order was shipped on December 30, 2023 J&M has not included this inventory

c. Red Blazers (tem 26193) were purchased and shipped from International Co. on December 30 2023 for $3.440 FOB shipping The shipment arrived January 5, 2024, and the appropriate party paid for the shipping charges of $460/Additional costs were $290 for import duties and $88 for insurance during shipment J&M has not included this inventory

d. At year-end. J&M is holding $9.512 of black pants (item #10824) on consignment for designer Duke Co. This inventory was included

is J&M's inventory count and inventory sting

e. On December 31, 2023 J&M snipped white shirts (tem #4291), FOB destination costing $1.210 to a customer. The customer was charged $1400 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 (Do not leave any empty spaces; input a 0 wherever it is required.)

Inventory Cost

2. Determine the correct ending inventory value at December 31, 2023. Starting with the unadjusted inventory value of $82.500, add or subtract any errors based on your analysis in Part t Assume all items that are not shown in the inventory listing are recorded correctly.

Merchandise Inventory