Wellburn Corporations inventory at December 31, 2021, was $325,000 based on a physical count priced at cost, and before any necessary adjustment for the following:

• Merchandise costing $30,000, shipped f.o.b. shipping point from a vendor on December 30, 2021, was received on January 5, 2022.
• Merchandise costing $22,000, shipped f.o.b. destination from a vendor on December 28, 2021, was received on January 3, 2022.
• Merchandise costing $38,000 was shipped to a customer f.o.b. destination on December 28, arrived at the customers location on January 6, 2022.
• Merchandise costing $12,000 was being held on consignment by Traynor Company.

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

Multiple Choice

• $427,000.

• $325,000.

• $367,000.

• $405,000.