determine the amount of ending inventory that should appear on the balance sheet 600764

The lower of cost or market rule

Segal Company, a retailer of Nokia mobile phones, uses FIFO for costing its inventory. A physical count of inventory at the end of the year revealed the following:

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Model 3720

60 units at a per unit cost of €90

Model 6700

150 units at a per unit cost of €85

Model 6303

100 units at a per unit cost of €75

The net realizable value per unit at year-end was €72, €130, and €105 for the Models 3720, 6700, and 6303, respectively.

Required

Determine the amount of ending inventory that should appear on the balance sheet.

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