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

    	Surgical				Surgical				Rehab				Rehab
    	Equipment				Supplies				Equipment				Supplies
    Selling price	$	315			$	175			$	395			$	220
    Cost		225				145				305				217
    Replacement cost		295				135				290				213
    Costs to sell		52				16				48				32
    Normal gross profit ratio		40	%			40	%			40	%			40	%

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

    Multiple Choice

    • $347.

    • $381.

    • $150.

    • $290.