Included in the December 31, 2016, inventory of the Top DogTop Dog Supply Company are 2,500 deluxe ring binders in the amount of $6,752.

An examination of the most recent acquisitions of binders showed the following costs: January 26, 2017, 1,900 at $2.86 each; December 6, 2016, 1,700 at $2.76 each; November 26, 2016, 2,000 at $2.45 each.

What is the misstatement in valuation of the December 31,2016, inventory for deluxe ring binders, assuming FIFO inventory valuation?

What would your answer be if the January 26, 2017, acquisition was for 1,900 binders at $2.48 each?

What is the misstatement in valuation of the December 31, 2016, inventory for deluxe ring binders, assuming FIFO inventory valuation?

Assuming FIFO inventory valuation, the December 31, 2016 inventory balance for deluxe ring binders should be_______________								.
As such, the ending inventory balance of	$6,752	at December 31, 2016 is overstated or understated by ___________________