Novelli's Nursery has developed the following data in order to calculate the lower of cost or net realizable value for its products. The individual products are listed within the categories of trees. Selling Price Cost Broad leaf trees: Ash $ 1,880 $ 1,780 Beech 2,320 1,680 Needle leaf trees: Cedar $ 2,660 $ 1,830 Fir 3,800 3,430 Fruit trees: Apple $ 1,880 $ 1,480 Cherry 2,420 1,880 The costs to sell are 10% of selling price. Required: Determine the reported inventory value assuming the lower of cost or net realizable value rule is applied to the total inventory.

Product Cost NRV Lower of Cost or NRV Ash $1,780 $1,602 Beech 1,680 1,512 Cedar 1,830 1,647 Fir 3,430 3,087 Apple 1,480 1,332 Cherry 1,880 1,692 Total inventory $12,080 $10,872 Inventory value