1. Ellens Boutique follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.

Item No.	Quantity	Cost per Unit	Cost to Replace	Estimated Selling Price	Cost of Completion and Disposal	Normal Profit (% of Sales)
A	1,200	$8.10	$8.00	$9.00	$0.35	15%
B	600	6.00	5.60	6.00	0.45	10%
C	200	5.50	5.00	7.00	0.40	5%
D	700	7.25	7.25	8.00	0.50	12%

Instructions: From the information above, determine the amount of Ellens Boutique inventory. Journalize any necessary entries using the allowance method.