The inventory of 3T Company on December 31, 2014, consists of the following items.

Part No.			Quantity			Cost per Unit			Cost to Replace per Unit
110			630			$115			$128
111			1,060			77			67
112			590			102			97
113			210			218			230
120			460			262			266
121	a		1,700			20			18
122			370			307			301

^a Part No. 121 is obsolete and has a realizable value of $0.64 each as scrap.

Determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.