In December year 1, Johnny corporation produced three products that it still has in inventory at December 31, the end of its financial year. Information about these products is as following:

Product Cost ($) Replacement cost ($) Selling price ($)

A 250 280 300

B 270 240 260

C 200 180 150

Johnny company estimates the selling costs is 10 percent of the selling price of each of these products

Required: Calculate the amount at which Johnny company should report its inventory in balance sheet on December 31, year 1