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(4) Data related to the inventories of Mountain Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 150,000
(4) Data related to the inventories of Mountain Ski Equipment and Supplies is presented below:
Skis Boots Apparel Supplies Selling price $ 180,000 $ 150,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 48,000 Replacement cost 120,000 130,000 110,000 50,000 Sales commission 10 % 10 % 10 % 10 % Normal gross profit ratio 20 % 20 % 15 % 15 %
In applying the lower of cost or market rule, at what amount would the inventory of Supplies and Boots be valued?
(4) Data related to the inventories of Mountain Ski Equipment and Supplies is presented below:
| Skis | Boots | Apparel | Supplies | ||||||||||||
| Selling price | $ | 180,000 | $ | 150,000 | $ | 120,000 | $ | 60,000 | |||||||
| Cost | 128,000 | 133,000 | 90,000 | 48,000 | |||||||||||
| Replacement cost | 120,000 | 130,000 | 110,000 | 50,000 | |||||||||||
| Sales commission | 10 | % | 10 | % | 10 | % | 10 | % | |||||||
| Normal gross profit ratio | 20 | % | 20 | % | 15 | % | 15 | % | |||||||
In applying the lower of cost or market rule, at what amount would the inventory of Supplies and Boots be valued?
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