6) Coastal Shores Inc. (CSI) was destroyed by Hurricane Fred on August 5, 2016. At January 1, CSI reported an inventory of $170,000. Sales from January 1, 2016, to August 5, 2016, totaled $480,000 and purchases totaled $195,000 during that time. CSI consistently marks up its products 60% over cost to arrive at a selling price. The estimated inventory loss due to Hurricane Fred would be:

None of these answer choices are correct.

$69,000.

$131,175.

$65,000.

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

	Surgical Equipment	Surgical Supplies	Rehab Equipment	Rehab Supplies
Selling price	$270	$124	$345	$151
Cost	159	101	257	151
Costs to sell	25	14	33	7

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

$245.

$223.

$183.

$159.

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

	Skis	Boots	Apparel	Supplies
Selling price	$166,000	$160,000	$114,000	$73,000
Cost	139,000	137,000	74,100	51,100
Replacement cost	115,000	113,000	94,100	47,100
Sales commission	10%	10%	10%	10%

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

$51,100.

$47,100.

$48,100.

$65,700.

9)Inventory is valued at:

Cost.

Lower of cost and net realizable value.

Net realizable value.

Replacement cost.