The GOAT COMPANY reviewed its inventories and found the following items:

1. In the shipping room was a product costing P13,400 when the physical count was taken.

Because it was marked "Hold for shipping instructions", it was not included in the count.

The customer order was dated December 15, but the product was shipped and the

customer billed on January 4, 2019

2. On December 27, 2018, merchandise costing P11,648 was received and recorded. The

invoice accompanying the merchandise was marked "on consignment".

3. The company received merchandise costing P4,625 on January 2, 2019. The invoice,

which was recorded on January 3, 2019, showed shipment was made under FOB

Shipping Point on December 31, 2018. The merchandise was not included in the

inventory because it was not on hand when the physical count was taken.

4. A product, fabricated to order for a particular customer, was completed and in the

shipping room on December 31. Although it was shipped on January 5, 2019, the

customer was billed on December 31, 2018 and it was excluded from the inventory

5. Merchandise costing P16,666 was received on January 5, 2019, and the related

purchase invoice was recorded January 6. The shipment of this merchandise was made

on December 31, 2018, FOD Destination

6. A product costing P150,000 was sold on an installment basis on December 10, 2018. It

was delivered to the customer on that date. The product was included in inventory

because Goat still holds legal title. The company's experience suggests that full payment

on installment sales is reasonably assured

7. An item costing P65,000 was sold and delivered to the customer on December 29, 2018.

The goods were included in the inventory because the sale was with a repurchase

agreement that requires Goat to buy back the inventory on January 15, 2019.

Indicate which of the above items are to be included in the inventory balance at December 31,

2018. State your reasons for the treatment you suggest.