13) 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 skis would be valued at:A) $162,000.B) $128,000C) $120,000.D) $180,000.

Inventory is the current assets showed in the balance sheet of the company.

Answered: Data related to the inventories of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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13) 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 skis would be valued at:

A) $162,000.
B) $128,000
C) $120,000.

D) $180,000.

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