Skis				Boots				Apparel				Supplies
Selling price	$	172,000			$	162,000			$	112,000			$	63,000
Cost		138,000				136,000				78,400				44,100
Replacement cost		134,000				119,000				98,400				40,100
Sales commission		10	%			10	%			10	%			10	%

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

Multiple Choice

• $120,400.

• $138,000.

• $154,800.

• $134,000.