Iris Company has provided the following information regarding two of its items of inventory at year-end:

• There are 120 units of Item A, having a cost of $24 per unit, a selling price of $28 and a cost to sell of $6 per unit.
• There are 70 units of Item B, having a cost of $54 per unit, a selling price of $60 and a cost to sell of $4 per unit.

How much is the ending inventory using lower of cost or net realizable value on an item-by-item basis?

$7,010.

$6,420.

$6,660.

$6,770.