Travis 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 $$65,600.$ During the audit, the independent CPA developed the following additional information:

Required:

Assume that Travis$$s accounting policy requires including in inventory all goods for which it has title. Note that the point where title $($ownership$)$ changes hands is determined by the shipping terms in the sales contract. When goods are shipped $$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. Compute the correct amount for the ending inventory.

Note: Deductible amounts should be entered with a minus sign.