Question: Loft Co. reviewed its LIFO inventory values for proper pricing at year-end. The following summarizes two inventory items examined for the lower of cost or

Loft Co. reviewed its LIFO inventory values for proper pricing at year-end. The following summarizes two inventory items examined for the lower of cost or market:

Inventory item #1

Original Cost $210000

Replacement Cost $150000

Net Realizable Value $240000

Net Realizable Value Less Profit Margin $208000

Inventory item #2

Original Cost $400000

Replacement Cost $370000

Net Realizable Value $410000

Net Realizable Value Less Profit Margin $405000

What amount should Loft include in inventory at year-end, if it uses the total of the inventory to apply the lower of cost or market?

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