the amounts we deducted are not part of the inventory account? can you explain why we deducted these and not FOB shipping.

4. The inventory account of Mike Company at December 31, 2020, included the following items: Inventory Amount Merchandise out on consignment at sales price (including markup of 40% on selling price) $60,000 Goods purchased, in transit (shipped f.o.b. shipping point) 48,000 Goods held on consignment by Irick 62,000 Goods out on approval (sales price $30,400, cost $25,600) 30,400 Based on the above information, the inventory account at December 31, 2020, should be reduced by