Question

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 on an individual item basis, the inventory of surgical equipment would be valued at: (do not include $ in your answer)

Answer 1

the inventory that should be valued is $170

Step-by-step explanation:

The computation of the inventory of surgical equipment is shown below:

Costs $170

Net Realizable Value:

Selling price $260

Less: Costs to sell -$30 $230

Lower of cost or net realizable value $170

As we know that the inventory should be valued at cost or net realizable value whichever is lower

So, the inventory that should be valued is $170