Stock Value (cost and nrv)

i know that stock must be valued at lower of cost and nrv. if you have a stock item and the total cost is £4450 and the selling price is £5750 and that included are some items that cost £700 but would only sell for say
£220. Does anyone know what the stock value for this item is? I thought that stock would be adjusted so the cost £4450 - £700 + £220 = £3950. Does this mean that the stock value is £3950.