In applying the LCM rule, the inventory of rehab supplies would be valued at:
A)$122.
B)$158.
C)$162.
D)$155.$155 designated market value is less than $162 cost.

Question

Quizplus · Accepted Answer

According to the LCM rule, inventory should be valued at the lower of cost or market value. The cost of the rehab supplies is $162 and the market value is $155. Therefore, the inventory should be valued at $155, which is less than the cost. Therefore, the best choice is D.

In Applying the LCM Rule, the Inventory of Rehab Supplies