In the inventory audit of Payaman Clothing, you have gathered the following information:

Required: How much should the inventory be stated on December 31, 2020?

a. 302,000

b. 317,500

c. 271,000

d. 251,000

*Kindly provide a solution and explanation. Thanks!

Extension, footing errors (undervaluation) Inventory items duplicated 4,0003,00020,000 Goods being held on consignment by client Goods still in transit, FOB shipping point 15,000 Physical inventory of all merchandise on the premises of the entity 275,000