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

	Surgical Equipment	Surgical Supplies	Rehab Equipment	Rehab Supplies
Selling price	$ 360	$ 220	$ 440	$ 265
Cost	270	190	350	262
Replacement cost	340	180	335	258
Costs to sell	70	25	45	50
Normal gross profit ratio	40%	40%	40%	40%

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

Multiple Choice

• $190.

• $155.

• $180.

• $200.