#1 Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

	Skis				Boots				Apparel				Supplies
Selling price	$	173,000			$	162,000			$	118,000			$	69,000
Cost		146,000				138,000				82,600				44,850
Replacement cost		112,000				120,000				102,600				40,850
Sales commission		10	%			10	%			10	%			10	%

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

Multiple Choice

• $44,850.

• $41,850.

• $40,850.

• $62,100.

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

	Surgical Equipment				Surgical Supplies				Rehab Equipment				Rehab Supplies
Selling price	$	274			$	137			$	356			$	151
Cost		162				137				251				150
Costs to sell		21				16				22				8

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

Multiple Choice

• $113.

• $121.

• $137.

• $94.

Memphis Wholesale Market applies the lower of cost or net realizable valuation to individual products and has collected the following data: Selling price Cost Costs to sell Product A $ 97 67 16 Product B $122 72 21 Product C $ 77 77 7 Determine the inventory book value for Products A, B, and C. Product NRV Cost Inventory Value A B