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Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: skis boots apparel supplies selling price 180,000 140,000 120,000 60,000 cost
Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:
skis | boots | apparel | supplies | |
selling price | 180,000 | 140,000 | 120,000 | 60,000 |
cost | 128,000 | 133,000 | 90,000 | 45,000 |
replacement cost | 120,000 | 130,000 | 110,000 | 410,000 |
sales commission | 10% | 10% | 10% | 10% |
1.In applying the lower of cost and net realizable value rule, the inventory of skis would be valued at:
$180,000.
$128,000.
$162,000.
$120,000.
2.In applying the lower of cost and net realizable value rule, the inventory of apparel would be valued at:
$99,000
$110,000
$108,000
$90,000
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