On December 31, Powell Company had an ending inventory of $87,000 based primarily on a physical count at its warehouse. In computing the final balance ofInventory, the following information was available:(a)Inventory items with a cost of $3,280 were included in ending inventory. These goods were onconsignmentfrom Green Company and had not yet been sold on December 31.

(b)Inventory items with a cost of $2,030 were excluded from ending inventory. These goods were in transit from Washington Company to Powell Company and were purchasedFOB shipping point.

(c)Inventory items with a cost of $3,750 were excluded from ending inventory. These goods were in transit from Morgan Company to Powell Company and were purchasedFOB destination.

Correct ending inventory balance: