Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis.

Sanchez Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Quantity Unit Cost When Net Realizable Value Item on Hand Acquired (FIFO) (Market) at Year-End A 23 $ 13 $ 18 CO 58 43 47 38 60 58 O 13 30 35 Required: 1. Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item-by-item basis