Optima Corporation applies the lower of cost or market rule for inventory valuation purposes on an individual product basis. On December 31 2006, the following data was available for its two products:
Product Quantity Cost/unit Market/unit
VHS 100 $5.00 $3.20
DVD 200 $7.50 $8.00
Based on this information, what should Optima report as its ending inventory balance on its balance sheet on December 31, 2006?
