Elisabeth Company took a physical inventory on December 31 and determined that goods costing $250,000 were on hand. Not included in the physical count were $35,000 of goods purchased from Peter Corporation, f.o.b. destination, and $22,000 of goods sold to Ashton Company for $30,000, f.o.b. destination. Both the Peter purchase and the Ashton sale were in transit at year-end.

What amount should Elisabeth report as its December 31 inventory?