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				$	297,000
Cost of sales
Beginning inventory	$	32,700
Purchases		201,000
Cost of goods available for sale		233,700
Ending inventory (FIFO cost)		75,536
Cost of sales					158,164
Gross profit					138,836
Operating expenses					63,700
Pretax earnings					75,136
Income tax expense (40%)					30,054
Net earnings				$	45,082

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
Item	Quantity			Unit				Total		Net Realizable Value
A		3,220		$	4.70		$	15,134		$	5.70
B		1,670			6.70			11,189			5.20
C		7,270			3.20			23,264			5.20
D		3,370			7.70			25,949			5.70
							$	75,536

1. Restate the statement of earnings to reflect the valuation of the ending inventory on December 31, 2020, at the LC&NRV. Apply the LC&NRV rule on an item-by-item basis.