Reggie Company has just completed a physical inventory count at year$-$end, December $31$ of the current year. Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $$65,000.$ During the audit, the auditor developed the following additional information:

Goods costing $$750$ were being used by a customer on a trial basis and were excluded from the inventory count at December $31.$

Goods costing $$900$ were in transit to Reggie on December $31,$ with terms FOB destination $($explained below$).$ Because these goods had not arrived, they were excluded from the physical inventory count.

On December $31,$ goods in transit to customers, with terms FOB shipping point, amounted to $$1,300($the expected delivery date was January $10,$ next year$).$ Because the goods had been shipped, they were excluded from the physical inventory count.

On December $28,$ a customer purchased goods for $$2,650$ cash and left them $$for pick$-$up on January $3,$ next year.$$ The cost of sales totalled $$1,590$ and was included in the physical inventory count because the goods were still on hand.

On the date of the inventory count, the company received notice from a supplier that goods ordered earlier at a cost of $$2,550$ had been delivered to the transportation company on December $27$; the terms were FOB shipping point. Because the shipment had not arrived by December $31,$ it was excluded from the physical inventory count.

On December $31,$ the company shipped goods to a customer, FOB destination. The goods, which cost $$850,$ are not expected to arrive at their destination before January $8,$ next year. Because the goods were not on hand, they were not included in the physical inventory count.

One of the items sold by the company has such a low volume that the management planned to drop it last year. To induce Reggie Company to continue carrying the item, the manufacturer$-$supplier provided the item on a consignment basis. This means that the manufacturer$-$supplier retains ownership of the item, and Reggie Company $($the consignee$)$ has no responsibility to pay for the items until they are sold to customers. Each month, Reggie Company sends a report to the manufacturer on the number sold and remits cash for the cost. At December $31,$ Reggie Company had five of these items on hand; therefore, they were included in the physical inventory count at $$950$ each.

Required:

Reggie is required to include in inventory all goods for which it has title. Note that the point where title $($ownership$)$ changes hands is determined by the shipping terms in the sales contract. When goods are shipped $$FOB shipping point,$$ title changes hands at shipment and the buyer normally pays for shipping. When they are shipped $$FOB destination,$$ title changes hands on delivery, and the seller normally pays for shipping. Begin with the $$65,000$ inventory amount and compute the correct amount for the ending inventory.