Smart Company prepared its annual financial statements dated December 31, 2020. The company applies the FIFO inventory costing method; however, the company neglected to apply the LC&NRV valuation to the ending inventory. The preliminary 2020 statement of earnings follows: Sales revenue Cost of sales Beginning inventory Purchases Cost of goods available for sale Ending inventory (FIFO cost) Cost of sales Gross profit Operating expenses Pretax earnings Income tax expense (40%) Net earnings $288,000 $ 31,800 192,000 223,800 59,876 163,924 124,076 62,800 61,276 24,510 $ 36,766 Assume that you have been asked to restate the 2020 financial statements to incorporate the LC&NRV inventory valuation rule. You have developed the following data relating to the ending inventory at December 31, 2020: Acquisition Cost Net Realizable Item Quantity Unit Total Value A 3,130 $3.80 $11,894 $4.80 B 1,580 5.80 9,164 4.30 C 7,180 2.30 16,514 4.30 D 3,280 6.80 22,304 4.80 $59,876