Smart Company prepared its annual financial statements dated December 31, 2017. The company applies the FIFO inventory costing method; however, the company neglected to apply the LC&NRV valuation to the ending inventory. The preliminary 2017 statement of earnings follows:

Smart Company the FIFO inventory costing method; however, the company neglected to apply the LC&NRV valuation to the ending inventory. The preliminary 2017 statement of earnings follows prepared its annual financial statements dated December 31, 2017. The company applies $291,000 Sales revenue Cost of sales Beginning inventory 32,100 195,000 Purchases Cost of goods available for sale Ending inventory (FIFO cost) 227,100 65,024 162,076 128,924 63,100 65,824 26,330 $ 39,494 Cost of sales Gross profit Operating expenses Pretax earnings Income tax expense (40%) Net earnings Assume that you have been asked to restate the 2017 financial statements to incorporate the LC&NRV inventory valuation rule. You have developed the following data relating to the ending inventory at December 31, 2017 Net Realizable Value Acquisition Cost Quantity 3,160 1,610 7,210 3,310 tem Unit Total $4.10 $12,956 9,821 2.60 18,746 7.10 23,501 $5.10 4.60 4.60 5.10 6.10 $65,024