Based on our understanding of inventory cost flows, and given the information listed below for the company's fiscal year 2018, determine beginning inventory in 2018. A physical count indicated that there was $30,000 of inventory on hand at December 31, 2018 (i.e., ending inventory).

Sales $317,000

Freight In $7,000

Purchase Returns and Allowances $8,000

Sales Returns $9,000

Purchase Discounts $4,000

Purchases $245,000

Gross Profit $75,000

Sales Discounts $1,000

Select one:

a. $36,000

b. $29,000

c. $21,000

d. $32,000

e. $22,000