On December 31, Phillips Company had an ending inventory of $107,000 based primarily on a physical count at its warehouse. In computing the final balance of Inventory, the following information was available:

(a) Inventory items with a cost of $3,360 were excluded from ending inventory. These goods were on consignment from Lewis Company and had not yet been sold on December 31.

(b) Inventory items with a cost of $3,940 were excluded from ending inventory. These goods were in transit from Cook Company to Phillips Company and were purchased FOB shipping point.

(c) Inventory items with a cost of $2,200 were included in ending inventory. These goods were in transit from Phillips Company to Alexander Company and were sold FOB destination. Required: Using the information given above, compute the correct final balance of Inventory.