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	620	$125	$139
111	1,000	83	72
112	590	111	106
113	290	236	250
120	420	285	289
121	1600	22	19
122	380	334	327

^aPart No. 121 is obsolete and has a realizable value of $0.70each as scrap.

(a)Determine the inventory as of December 31, 2014, by the lower-of-cost-or-market method, applying this method directly to each item.

Inventory as of December 31, 2013

$

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

Inventory as of December 31, 2013

$