Determine the correct inventory amount.

Bank of China is considering giving Lulu Ltd a loan. Before doing so, the bank decides that further discussions with Lulu's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $162 250. Discussions with the accountant reveal the following.

1. Lulu Ltd sold goods costing $19 250 to Menzies Ltd FOB shipping point on 28 June. The goods are not expected to arrive in Indonesia until 12 July. 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 $52 250 that were shipped to Lulu Ltd FOB destination on 27 June and were still in transit at year-end.

3. Lulu sold goods costing $22 000 to Sterling of Canada FOB destination on 30 June. The goods were received in Canada on 8 July. They were not included in Lulu's physical inventory.

4. Goods costing $27 500 have been in inventory for more than 12 months and are unlikely to be sold.

Required

Determine the correct inventory amount on 30 June.