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Data related to the inventories of Kimzey Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies Equipment Supplies Selling price $ 300 $
Data related to the inventories of Kimzey Medical Supply are presented below:
Surgical | Surgical | Rehab | Rehab | ||||||||||||
Equipment | Supplies | Equipment | Supplies | ||||||||||||
Selling price | $ | 300 | $ | 160 | $ | 380 | $ | 205 | |||||||
Cost | 210 | 130 | 290 | 202 | |||||||||||
Replacement cost | 280 | 120 | 275 | 198 | |||||||||||
Costs to sell | 46 | 13 | 33 | 26 | |||||||||||
Normal gross profit ratio | 40 | % | 40 | % | 40 | % | 40 | % | |||||||
In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at:
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