Rodriquez Exporters took a physical inventory on December 31 and determined that goods costing 650,000 were on hand. Not included in the physical count were 10,000 of goods purchased from Alberto Automotive, f.o.b. shipping point, and 31,000 of goods sold to Ro-Ro Company for 40,000, f.o.b. destination. Both the Alberto purchase and the Ro-Ro sale were in transit at year-end. What amount should Rodriquez report as its December 31 inventory?