1)

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

	Surgical Equipment				Surgical Supplies				Rehab Equipment				Rehab Supplies
Selling price	$	276			$	130			$	320			$	153
Cost		152				106				287				151
Costs to sell		20				11				26				9

In applying the lower of cost or net realizable value rule, the inventory of rehab equipment would be valued at:

Multiple Choice

• $287.

• $294.

• $208.

2)

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

	Surgical Equipment				Surgical Supplies				Rehab Equipment				Rehab Supplies
Selling price	$	278			$	121			$	353			$	153
Cost		152				99				251				147
Costs to sell		23				10				16				13

In applying the lower of cost or net realizable value rule, the inventory of rehab supplies would be valued at:

Multiple Choice

• $109.

• $147.

• $143.

3)

Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

	Skis				Boots				Apparel				Supplies
Selling price	$	180,000			$	150,000			$	108,000			$	74,000
Cost		139,000				140,000				70,200				51,800
Replacement cost		135,000				124,000				90,200				47,800
Sales commission		10	%			10	%			10	%			10	%

In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at:

Multiple Choice

• $162,000.

• $139,000.

• $117,000.