Smart Phones, Inc. had the following balances and transactions during 2019.

Beginning Inventory	20 units at $71
June 10	Purchased 60 units at $75
December 30	Sold 55 units
December 31	Replacement cost $78

The company maintains its records of inventory on a perpetual basis using the

lastin,

firstout

inventory costing method. Calculate the amount of ending Merchandise Inventory at December 31, 2019 using the

lowerofcostormarket

rule. (Round any intermediate calculations two decimal places, and your final answer to the nearest dollar.)

A.

$1,875

B.

$1,950

C.

$1,795

D.

$1,420