Naughty Dog Disc Golf Shop uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31.

Item Units Unit Cost Market

Baskets:

Innova 10 $190 $200

Discraft 20 175 160

Disc bags:

Lightning 15 20 16

Wham-O 14 30 28

Instructions:

(a) Determine the amount of the ending inventory by applying the lower-of-cost-or-market basis.