Smith-Miller Enterprises Has Inventory of $667,000 in Its Stores as of December

Multiple Choice

Smith-Miller Enterprises has inventory of $667,000 in its stores as of December 31. It also has two shipments in-transit that left the suppliers' warehouses by December 28. Both shipments are expected to arrive on January 5. The first shipment of $128,000 was sold f.o.b. destination and the second shipment of $80,000 was sold f.o.b. shipping point. What amount of inventory should Smith-Miller report on its balance sheet as of December 31?

A) $667,000
B) $875,000
C) $795,000
D) $747,000