In applying the LCM rule, the inventory of surgical supplies would be valued at:

Question

Quizplus · Accepted Answer

To apply the LCM (Lower of Cost or Market) rule, we compare the historical cost of the inventory with its current market value and choose the lower value as the new valuation. 
In this case, the historical cost of the surgical supplies inventory is $90, and the current market value is $80. Since the market value is lower, we would value the inventory at $80. Therefore, the best choice is C) $80.

In Applying the LCM Rule, the Inventory of Surgical Supplies