Gatineau Bank is considering giving Novak Corporation a short$-$term bank loan. Before doing so$,$ it decides that further discussions

with Novak's accountant may be desirable. One area of particular concern is the Inventory account, which, according to a recent

physical inventory count, has a balance of $$311,500$ at December $31.$ This count agreed with the accounting records. Discussions with

the accountant revealed the following:

Novak sold goods costing $$32,600$ to India$-$based Moghul Company, FOB destination, on December $28.$ Novak does not

expect the goods to arrive in India until January $12.$ The goods were not included in the physical inventory count, because

they were not in the warehouse.

The physical inventory count did not include goods costing $$96,300$ that a supplier shipped to Novak, FOB shipping point, on

December $27$ and that were still in transit at year end.

Novak received goods costing $$29,800$ on January $2.$ The goods were shipped FOB shipping point on December $26$ by Cellar

Corp. The goods were not included in the physical inventory count.

Novak sold goods costing $$49,800$ to United Kingdom$-$based Sterling of Britain Ltd$.,$ FOB shipping point, on December $30.$

Sterling received the goods on January $8.$ They were not included in Novak's physical inventory count.

On December $31,$ Schiller Corporation had $$29,400$ of goods held on consignment for Novak. The goods were not included in

the physical inventory count.

Included in the physical inventory count were $$16,100$ of parts for outdated products that the company had not been able

sell. It is unlikely that these obsolete parts will have any other use.

$($a$)$

Determine the correct inventory amount on December $31.$