Question

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

Surgical
Equipment Surgical
Supplies Rehab
Equipment Rehab
Supplies
Selling price $272 $135 $342 $153
Cost 151 103 256 153
Costs to sell 18 10 18 7
In applying the lower of cost and net realizable value rule, the inventory of rehab supplies would be valued at:_________

Answer 1

146

Step-by-step explanation:

The computation is shown below

Particulars Surgical Surgical Rehab Rehab

Equipment Supplies Equipment Supplies

Cost (A) 151 103 256 153

Selling price 272 135 342 153

Less:

cost to sell 18 10 18 7

Net realizable

value (B) 254 125 324 146

Lower of A & B 151 103 256 146