Dell Companys inventory at December 31, Year 1, was $1.2 million based on a physical count of goods priced at cost, and before any necessary year-end adjustments relating to the following: Included in the physical count were goods billed to a customer FOB shipping point on December 30, Year 1. These goods had a cost of $25,000 and were picked up by the carrier on January 7, Year 2. Goods shipped FOB shipping point on December 28, Year 1, from a vendor to Dell were received on January 4, Year 2. The invoice cost was $60,000. What amount should Dell report as inventory in its December 31, Year 1, balance sheet?
A.	$1,235,000
B.	$1,175,000
C.	$1,260,000
D.	$1,200,000