Data related to the inventories of Kimzey Medical Supply are presented below:   Surgical   Surgical   Rehab   Rehab   Equipment   Supplies   Equipment   Supplies Selling price $ 335     $ 195     $ 415     $ 240   Cost   245       165       325       237   Replacement cost   315       155       310       233   Costs to sell   60       20       40       40   Normal gross profit ratio   30 %     30 %     30 %     20 %   In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at: Multiple Choice a. $175. b. $165. c. $155. d. $135.

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A:

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.