Data related to the inventories of Noel Medical Supply Company is presented below. The

company applies lower of cost or net realizable value (LCNRV) and lower of cost or market

(LCM) on an item by item basis.

Surgical Surgical Rehab Rehab

Equipment Supplies Equipment Supplies

Selling price $ 260 $ 120 $ 340 $ 165

Cost $ 170 $ 90 $ 250 $ 162

Replacement cost $ 240 $ 80 $ 210 $ 158

Disposal cost $ 30 $ 5 $ 25 $ 10

Normal profit margin $ 78 $ 36 $ 102 $ 33

_____ 1. In applying the LCNRV rule, the inventory of surgical equipment would be valued at:

A) $230

B) $240

C) $170

D) $152

_____ 2. In applying the LCNRV rule, the inventory of surgical supplies would be valued at:

A) $115

B) $90

C) $80

D) $69

_____ 3. In applying the LCM rule, the inventory of rehab equipment would be valued at:

A) $315

B) $250

C) $213

D) $210

_____ 4. In applying the LCM rule, the inventory of rehab supplies would be valued at:

A) $122

B) $158

C) $162

D) $155