Question $2$

On December $31,2022,$ Sombreros Company's inventory balance was $$45,000.$ The balance included the following items:

$$5,000$ of purchased goods were in transit, shipped FOB destination on December $28,2022,$ due to arrive January $2.$

$$1,200$ of goods received on consignment from Chapeau Company.

$$2,500$ of purchased goods were in transit, shipped FOB shipping point on December $27,$ due to arrive January $2.$

What is Sombrero's correct ending inventory on December $31?$

Selected Answer:

b$.$ $$36,300.$

Answers:

a$.$ $$42,500.$

b$.$ $$36,300.$

c$.$ $$38,800.$

d$.$ $$45,000.$