Stallman Company took a physical inventory on December 31 and determined that goods costing $205,390 were on hand. Not included in the physical count were $30,020 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $26,920 of goods sold to Alvarez Company for $36,010, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Stallman report as its December 31 inventory?tep.