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

	Surgical Equipment	Surgical Supplies	Rehab Equipment	Rehab Supplies
Selling price	$265	$136	$359	$147
Cost	169	104	254	141
Replacement cost	227	79	242	137
Disposal cost	27	14	23	13
Normal gross profit ratio	28%	20%	29%	20%

In applying the LCM rule, the inventory of surgical equipment would be valued at:

	$169.
	$238.
	$164.
	$227.