First Bank is considering giving Sandhill Company a loan. First, however, it decides that it would be a good idea to have further

discussions with Sandhill's accountant, One area of particular concern is the inventory account, which has a December $31$ balance

of $$337,200.$ Discussions with the accountant reveal the following:

The physical count of the inventory did not include goods that cost $$114,000$ that were shipped to $5$ andhill, FOB shipping

point, on December $27$ and were still in transit at year end.

Sandhill sold goods that cost $$42,000$ to Carla Vista Company, FOB destination, on December $28.$ The goods are not

expected to arrive at their destination in India until January $12.$ The goods were not included in the physical inventory

because they were not in the warehouse.

On December $31,$lue Company had $$36,600$ of goods held on consignment for $5$andhill. The goods were not included in

Sandhill's ending inventory balance.

Sandhill received goods that cost $$33,600$ on January $2.$ The goods were shipped $FO$ shipping point on December $26$ by

Indigo $Co.$ The goods were not included in the physical count.

Determine the correct inventory amount at December $31.$

The correct cost of inwentory is:

Ending inventory$-$physical count

Adjustments:

inventory

inventory

inventory

inventory