Question
Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price(SP) 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(SP) | 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 | 41,000 |
| Selling costs(% of SP) | 10% | 10% | 10% | 10% |
In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at:
| a. | $162,000 | |
| b. | $128,000 | |
| c. | $120,000 | |
| d. | $180,000 |
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Authors: Tom Litton, Poppy Behrens, Erica Shatzer, George Bernal
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