Franklin Company has the following four items in its ending inventory as of December 31, 2014. 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.