Applying the method to the total of the inventory

Question

Problem: The inventory of Oheto Company on December 31, 2011, consists of the following items:

Part No.    Quantity    Cost per Unit    Cost to Replace per Unit
110             600             $95                        $100
111           1,000            $60                          $52
112             500             $80                          $76
113             200            $170                       $180
120             400            $205                       $208
121           1,600            $16                          $14
122             300            $240                        $235

Part No. 121 is obsolete and has a realizable value of $0.50 each as a scrap.

(Q1) Determine the inventory as of December 31, 2011, by the lower of cost or market method, applying this method directly to each item.

(Q2) Determine the inventory by the lower of cost or market method, applying the method to the total of the inventory.