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

	Skis	Boots	Apparel	Supplies
Selling price	$160,000	$167,000	$118,000	$79,000
Cost	130,000	139,000	76,700	55,300
Replacement cost	111,000	114,000	118,000	51,300
Sales commission	10%	10%	10%	10%

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

Multiple Choice

• $118,000.

• $76,700.

• $106,200.

• $109,740.

	Skis	Boots	Apparel	Supplies
Selling price	$160,000	$167,000	$118,000	$79,000
Cost	130,000	139,000	76,700	55,300
Replacement cost	111,000	114,000	118,000	51,300
Sales commission	10%	10%	10%	10%

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

Multiple Choice

• $118,000.

• $76,700.

• $106,200.