Briel Exercise 602 Waterway Industries took a physical invertory on December 31 and determined that goods costing $199,500 were on hand. Not included in the physical count were $25,000 of goods purchased from Oriole Company, FOB, shipping point, and $27,000 of goods sold to Kingbird, Inc. for $4,000, FOB destination. Both the Oriole purchase and the Kingbird sale were in transit at year-end. What amount should Waterway report as its December 31 inventory? Ending Inventory