question 1: Data related to the inventories of Kimzey Medical Supply are presented below:

Surgical Equipment

Surgical Supplies

Rehab Equipment

Rehab Supplies

Selling price

$260

$120

$340

$165

Cost

179

90

250

162

Replacement cost

240

80

25

158

Costs to sell

30

5

25

10

Normal gross profit ratio

30%

30%

30%

20%

Calculate the ending inventory using the lower of cost or market rule assuming the valuation method is applied to each inventory item. Prepare the necessary journal entry to be recorded.

1. question 2: The lower of cost or net realizable value is an inventory valuation method that can be applied to:
2. A.each item in the inventory.
3. B.major class or category of inventory.
4. C.total inventory as a whole.
5. D.any of the above.

question 3: Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows:

Product 1Product 2Product 3Cost$26$96$56Replacement cost249146Selling price4612663Selling costs83114Normal profit113618

Required:

What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory?

ProductCostReplacement costNRVNRV - NPMarketPer Unit Inventory Value1

$

26

$

24

$

38

$

27

$

27

$

2629691955995953564649313131