Question
Data related to the inventories of Mountain Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 190,000 $ 160,000 $
Data related to the inventories of Mountain Ski Equipment and Supplies is presented below:
| Skis | Boots | Apparel | Supplies | ||||||||||||
| Selling price | $ | 190,000 | $ | 160,000 | $ | 130,000 | $ | 70,000 | |||||||
| Cost | 133,000 | 138,000 | 95,000 | 53,000 | |||||||||||
| Replacement cost | 130,000 | 131,000 | 120,000 | 60,000 | |||||||||||
| Sales commission | 15 | % | 15 | % | 15 | % | 10 | % | |||||||
| Normal gross profit ratio | 25 | % | 25 | % | 20 | % | 20 | % | |||||||
In applying the lower of cost or market rule, the inventory of supplies would be valued at:
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Performance Auditing Measuring Inputs, Outputs, And Outcomes
Authors: Stephen L. Morgan, Ronell B. Raaum, Colleen G. Waring
3rd Edition
0894139762, 9780894139765
