Jaffa Company prepared its annual financial statements dated December $31$ of the current year. The company applies the FIFO

inventory costing method; however, the company neglected to apply lower of cost or net realizable value to the ending inventory. The

preliminary current year income statement follows:

Assume that you have been asked to restate the current year financial statements to incorporate lower of cost or NRV$.$ You have

developed the following data relating to the current year ending inventory: