Question
The following information pertains to one item of inventory of the lily Company: Boots Sales Price $150,000 Cost 133,000 Replacement Cost 130,000 Sales Commission 10%
The following information pertains to one item of inventory of the lily Company:
|
| Boots |
| Sales Price | $150,000 |
| Cost | 133,000 |
| Replacement Cost | 130,000 |
| Sales Commission | 10% of sales price |
| Normal profit margin | 20% |
Applying the lower of cost or net realizable value rule, this item should be valued at:
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Modern Auditing
Authors: Graham W. Cosserat, Neil Rodda
3rd Edition
0470319739, 9780470319734
