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Data related to the inventories of Costco Medical Supply are presented below:

Surgical Surgical Rehab Rehab
Equipment Supplies Equipment Supplies
Selling price $ 260 $ 100 $ 340 $ 165
Cost 170 90 250 162
Costs to sell 30 15 25 10

In applying the lower of cost or net realizable value rule, the inventory of surgical equipment would be valued at:

a. $230

b.$240

c. $170

d. $152

Respuesta :

TomShelby

Answer:

c. $170

Explanation:

We have to compare the cost with the net realizable value which is the sales proceeds less the cost of selling the good in this case, equipmen

Net realizable value: 260 sales price - 30 selling cost = 230

Historic Cost of the Surgical Equipment 170

We pick the lower value as we follwo conservatisims principles thus $170

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