d)119

Data related to the inventories of Kimzey Medical Supply are presented below: Selling price Cost Replacement cost Costs to sell Normal gross profit ratio Surgical Equipment $315 225 295 52 Surgical Supplies $175 145 135 16 40% Rehab Equipment $395 305 290 36 40% Rehab Supplies $220 217 213 32 40% 40% In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at Multiple Choice $135 $145 S155