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

	Surgical				Surgical				Rehab				Rehab
	Equipment				Supplies				Equipment				Supplies
Selling price	$	335			$	195			$	415			$	240
Cost		245				165				325				237
Replacement cost		315				155				310				233
Costs to sell		60				20				40				40
Normal gross profit ratio		30	%			30	%			30	%			20	%

In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at:

Multiple Choice

a. $175.

b. $165.

c. $155.

d. $135.