Data related to the inventories of Kimzey Medical Supply are presented below:

Surgical Equipment

Surgical Supplies

Rehab Equipment

Rehab Supplies

Selling price

$260

$120

$340

$165

Cost

179

90

250

162

Replacement cost

240

80

25

158

Costs to sell

30

5

25

10

Normal gross profit ratio

30%

30%

30%

20%

In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at:

A. $75
B. $100
C. $80
D. $90
 

Answer: C. $80

Business

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