Data related to the inventories of Kimzey Medical Supply are presented below:
-In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at:
A) $230.
B) $240.
C) $170.
D) $152.

Question

Data related to the inventories of Kimzey Medical Supply are presented below:  
-In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at:
A) $230. 
B) $240. 
C) $170. 
D) $152.

Quizplus · Accepted Answer

RC = $240.
NRV = $260 ? $30 = $230.
NRV - Normal profit margin = $230 - ($260 × 30%) = $152.
Designated market = NRV = $230.
Cost = $170.
Cost is lower than market.

Data Related to the Inventories of Kimzey Medical Supply Are