Springfield Bank and Trust is considering giving Homer Company a loan. Before doing so, they decide that further discussions with Homer’s accountant may be desirable.

One area of particular concern is the inventory account, which has a year-end balance of $295,000. Discussions with the accountant reveal the following. 1. Homer sold goods costing $55,000 to Moe Company FOB shipping point on December 28. The goods are not expected to reach Moe until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Homer FOB destination on December 27 and were still in transit at year-end. 3. Homer received goods costing $25,000 on January 2. The goods were shipped FOB shipping point on December 26 by Lenny Co. The goods were not included in the physical count. 4. Homer sold goods costing $51,000 to Flanders of Canada FOB destination on December 30. The goods were received in Canada on January 8. They were not included in Homer's physical inventory. 5. Homer received goods costing $37,000 on January 2 that were shipped FOB destination on December 29. The shipment was a rush order that was supposed to arrive December 31. This purchase was included in the ending inventory of $295,000.

Instructions Determine the correct inventory amount on December 31.