II. Data related to the inventories of Metro Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies Equipment Supplies Selling price $ 260 $ 120 $ 340 $ 165 Cost 170 90 250 162 Replacement cost 240 80 235 158 Costs to sell 30 5 25 10 Normal gross profit ratio 30 % 30 % 30 % 20 % *Show your computation! If not, no credit. A) In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at: B) In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at: C) In applying the lower of cost or market rule, the inventory of rehab equipment would be valued at: D) In applying the lower of cost or market rule, the inventory of rehab supplies would be valued at:
II. Data related to the inventories of Metro Supply are presented below:
|
|
Surgical |
|
Surgical |
|
Rehab |
|
Rehab |
||||||||
|
|
Equipment |
|
Supplies |
|
Equipment |
|
Supplies |
||||||||
|
Selling price |
$ |
260 |
|
|
$ |
120 |
|
|
$ |
340 |
|
|
$ |
165 |
|
|
Cost |
|
170 |
|
|
|
90 |
|
|
|
250 |
|
|
|
162 |
|
|
Replacement cost |
|
240 |
|
|
|
80 |
|
|
|
235 |
|
|
|
158 |
|
|
Costs to sell |
|
30 |
|
|
|
5 |
|
|
|
25 |
|
|
|
10 |
|
|
Normal gross profit ratio |
|
30 |
% |
|
|
30 |
% |
|
|
30 |
% |
|
|
20 |
% |
*Show your computation! If not, no credit.
A) In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at:
B) In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at:
C) In applying the lower of cost or market rule, the inventory of rehab equipment would be valued at:
D) In applying the lower of cost or market rule, the inventory of rehab supplies would be valued at:
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