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

	Surgical				Surgical				Rehab				Rehab
	Equipment				Supplies				Equipment				Supplies
Selling price	$	345			$	205			$	425			$	250
Cost		255				175				335				247
Replacement cost		325				165				320				243
Costs to sell		64				22				42				44
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:

rev: 10_24_2018_QC_CS-187670

Multiple Choice

• $185.

• $165.

• $175.

• $143.