The following information concerns four items that 21st Century Clothiers has in its ending inventory on December 31. Two of these items are in the accessories department, and two are in the men's jackets department.

______________Quantity_______Unit Cost__________Market Value

Accessories

Item 620............250................... $29..........................$ 32

Item 621............160.....................55............................52

Men's jackets

Item 726............110.....................95...........................102

Item 727............140.....................46............................45

1. What is the valuation of ending inventory if the firm uses the lower of cost or market method and applies it on an item-by-item basis?

2. If the company applies the lower of cost or market method on the basis of total cost or total market, what is the value of ending inventory?

3. If the company elects to apply the lower of cost or market method to inventory groups, what is the value of the ending inventory?