Sheridan Company took a physical inventory on December 31 and determined that goods costing $222,000 were on hand. Not included in the physical count were $35,000 of goods purchased from Windsor, Inc., FOB, shipping point, and $21,000 of goods sold to Bonita Industries for $32,000, FOB destination. Both the Windsor purchase and the Bonita sale were in transit at year-end. What amount should Sheridan report as its December 31 inventory?