Franklin Company has the following four items in its ending inventory as of December 31, 2012. The company uses the lower-of-cost-or-net realizable value approach for inventory valuation following IFRS.
|
Item No. |
Cost |
Net Realizable Value |
|
AB |
$1,700 |
$1,400 |
|
TRX |
2,200 |
2,300 |
|
NWA |
7,800 |
7,100 |
|
SGH |
3,000 |
3,700 |
Compute the lower-of-cost-or-net realizable value.