Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost. Information for the month of January follows:

	Total Units	Unit Cost
Beginning inventory, 1/1	8,000	$8.20
Purchases, 1/5	12,000	7.90
Sales	10,000

Rose has determined that at January 31, the replacement cost of its inventory was $8 per unit, and the net realizable value was $8.80 per unit. Roses normal profit margin is $1 per unit. Rose applies the lower-of-cost-or-market rule to total inventory and records any resulting loss. At January 31, what should be the net carrying amount of Roses inventory?

A.

$79,000

B.

$78,000

C.

$80,000

D.

$81,400