The Constance Corporations inventory at December 31, 2021, was $125,000 (at cost) based on a physical count of inventory on hand, before any necessary adjustment for the following:

• Merchandise costing $15,000, shipped f.o.b. shipping point from a vendor on December 27, 2021, was received by Constance on January 5, 2022.
• Merchandise costing $45,000 was shipped to a customer f.o.b. shipping point on December 28, 2021, arrived at the customers location on January 6, 2022.
• Merchandise costing $21,000 was being held on hand for Jess Company on consignment.
• Estimated sales returns are 10% of annual sales. Sales revenue was $550,000 with a gross profit ratio of 25%.

What amount should Constance Corporation report as inventory in its December 31, 2021, balance sheet?

Multiple Choice

A. $160,250.

B. $145,250.

C. $187,250.

D. $190,250.