Question
Data related to the inventories of Reeds Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies Equipment Supplies Selling price $ 310 $
Data related to the inventories of Reeds Medical Supply are presented below:
| Surgical | Surgical | Rehab | Rehab | ||||||||||||
| Equipment | Supplies | Equipment | Supplies | ||||||||||||
| Selling price | $ | 310 | $ | 170 | $ | 390 | $ | 215 | |||||||
| Cost | 220 | 140 | 300 | 212 | |||||||||||
| Replacement cost | 290 | 130 | 285 | 208 | |||||||||||
| Costs to sell | 50 | 15 | 35 | 30 | |||||||||||
| Normal gross profit ratio | 20 | % | 20 | % | 20 | % | 30 | % | |||||||
In applying the lower of cost or market rule, the inventory of rehab supplies would be valued at:
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
4th Edition
0471730513, 978-0471730514
