As a result of a thorough physical inventory, Railway Company determined that it had inventory worth $180,000 at December
31, 2020. This count did not take into consideration the following
facts: Rogers Consignment store currently has goods worth $35,000
on its sales fl oor that belong to Railway but are being sold on consignment by Rogers. The selling price of these goods is $50,000. Railway
purchased $13,000 of goods that were shipped on December 27, FOB
destination, that will be received by Railway on January

. Determine
the correct amount of inventory that Railway should report.
a. $230,000. c. $228,000.
b. $215,000. d. $193,000