Question 6

In December year 1, Johnny corporation produced three products that it still has in inventory at December 31, the end of its financial year. Information about these products is as following:

Product	Cost ($)	Replacement cost ($)	Selling price ($)
A	250	280	300
B	270	240	260
C	200	180	150

Johnny company estimates the selling costs is 10 percent of the selling price of each of these products

Required:

Calculate the amount at which Johnny company should report its inventory in balance sheet on December 31, year