Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 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 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of boots would be valued at: A) $140,000. B) $133,000. C) $126,000. D) $130,000.
Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 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 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of boots would be valued at: A) $140,000. B) $133,000. C) $126,000. D) $130,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 1MC: Sienna Company uses the FIFO cost flow assumption. Sierra has inventory with a selling price of 100,...
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Question
Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:
|
|
Skis |
|
Boots |
|
Apparel |
|
Supplies |
|
|||||||||||||
|
Selling price |
$ |
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 |
|
||||||
|
Sales commission |
|
10 |
% |
|
|
10 |
% |
|
|
10 |
% |
|
|
10 |
% |
||||||
In applying the lower of cost or net realizable value rule, the inventory of boots would be valued at:
- A) $140,000.
- B) $133,000.
- C) $126,000.
- D) $130,000.
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