Data related to the inventories of Kimzey Medical Supply are presented below: Surgical Rehab Rehab Surgical Equipment Supplies Equipment Supplies Selling price $ 468 $ 216 $ 612 $ 297 Cost 306 162 450 292 Replacement cost 432 144 423 284 Costs to sell 54 9 45 18 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: $306 $423 $144 $279