On December $1,2023,$ Fancy Foods forecasts that it will need $100,000$ bushels of oats in $60$ days to manufacture its products. To lock in the purchase price of the oats, it purchases $100,000$ bushels of oats for delivery in $60$ days at $$3\mathrm{.}85$ per bushel. The long futures position qualifies as a cash flow hedge of the forecasted purchase of oats and is considered highly effective. No margin deposit is required. On December $31,2023,$ the $30-$day futures price is $$3\mathrm{.}86$ per bushel and the spot price is $$3\mathrm{.}865$ per bushel. On January $29,2024,$ Fancy Foods closes its futures position and purchases the oats on the spot market for $$3\mathrm{.}88$ per bushel. Products containing the oats are sold on March $5,2024.$ Fancy Foods is a calendar$-$year company.

At what value is the inventory reported on January $29,2024?$

Select one:

a$.$ $$388,000$

b$.$ $$386,500$

c$.$ $$386,000$

d$.$ $$385,000$