Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a commission of 10% of the selling price on any merchandise sold. During the year, Mogul ships inventory with a cost of $91,000 to Ski Outfit and pays shipping costs of $15,700. By the end of the year, $71,000 of the merchandise has been sold to customers for a total of $96,000. Mogul allocates $11,500 of the shipping costs to inventory sold and the other $4,200 to inventory not sold. Mogul also paid advertising costs during the year of $15,500. What amount of inventory will Mogul report at year end?