In applying the LCM rule, the inventory of surgical equipment would be valued at:
A)$230.
B)$240.
C)$170.
D)$152.$170 designated cost is less than $230 designated market value.

Question

Quizplus · Accepted Answer

In applying the Lower of Cost or Market (LCM) rule, the inventory should be valued at the lower of its cost or its market value. The designated cost of the surgical equipment is $170, which is less than the designated market value of $230. Therefore, the inventory should be valued at $170. So, the best choice is option C.

In Applying the LCM Rule, the Inventory of Surgical Equipment