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.