Shell Company determined its December 31, 2007 inventory to be $1,000,000 based

on a physical count priced at cost. It then determined the following additional information:

Merchandise costing $80,000, was shipped FOB shipping point from a vendor on December 30, 2004. This merchandise was received and recorded on January 5, 2008.

Goods costing $110,000 were staged on the shipping dock and excluded from inventory although shipment was not made until January 4, 2008. The goods were billed to the customer FOB shipping point on December 30, 2007.

What is Shells ending inventory for its December 31, 2007, balance sheet?

a.	$1,000,000
b.	$1,080,000
c.	$1,190,000
d.	$1,110,000