The inventory of Oheto Company on December 21, 2013, consists of the following items:

Part No. Quantity Cost per Unit Cost to Replace per Unit
110 600 $95 $100
111 1000 60 52
112 500 80 76
113 200 170 180
120 400 205 208
121 a 1600 16 14
122 300 240 235

a-part no 121 is obsolete and has a realizable value of $.50 each as scrap

instructions
a) determine the inventory as of December 31, 2013, by the lower-of-cost-or-market method, applying this method directly to each item.
b) determine the inventory by the lower-of-cost-or-market method, applying the method to the total of the inventory.