Data related to the inventories of Kimzey Medical Supply are presented below:
- In applying the lower of cost or market rule, the inventory of rehab equipment would be valued at:
A) $315.
B) $247.
C) $150.
D) $235.

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 rehab equipment would be valued at:
A) $315. 
B) $247. 
C) $150. 
D) $235.

Quizplus · Accepted Answer

RC = $235.
NRV = $340 ? $25 = $315.
NRV - Normal profit margin = $315 - ($340 × 30%) = $213.
Designated market = RC = $235.
Cost = $250.
Market is lower than cost.

Data Related to the Inventories of Kimzey Medical Supply Are