Chris' Cupcakery conveniently next door to Kaleb's Medical Cannabis Clinic projects its inventory on December 31, 2021. The results of this projection were $325,000, based on a physical count priced at cost, and before any necessary adjustments were made for the following items:

(i) merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on December 30, 2021, was received on January 5, 2022;

(ii) merchandise costing $22,000, shipped f.o.b. destination from a vendor on December 28, 2021, was received on January 3, 2022;

(iii) merchandise costing $38,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customer's location on January 6, 2022; and

(iv) merchandise costing $12,000 was being held on consignment by Rolling Scones, a bakery owned by Dalton Mitchell, CPA.

What amount should Chris' Cupcakery report as inventory in its December 31, 2021, balance sheet?

(a) $367,000;

(b) $427,000;

(c) $405,000;

(d) $325,000; or

(e) $417,000.