1. Montana Co. has determined its year-end inventory on a FIFO basis to be $615,000. Information pertaining to that inventory is as follows: Selling price $630,000 Disposal costs 34,000 Normal profit margin 71,000 Replacement cost 537,000 What should be the carrying value of Montana's inventory? $525,000. $615,000. $596,000. $537,000. 2. In a period when costs are rising and inventory quantities are stable, the inventory method that would result in the highest ending inventory is: Weighted average. Moving average. FIFO. LIFO. 3. Data related to the inventories of Costco Medical Supply is presented below: Surgical Equipment Surgical Supplies Rehab Equipment Rehab Supplies Selling price $273 $135 $352 $159 Cost 170 109 260 155 Replacement cost 226 73 226 151 Disposal cost 12 11 25 11 Normal gross profit ratio 24% 30% 22% 30% In applying the LCM rule, the inventory of surgical equipment would be valued at (Round your answer to the nearest whole dollar amount): $170. $195. $261. $226