Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 165,000 $ 151,000 $ 116,000 $ 78,000 Cost 139,000 137,000 75,400 54,600 Replacement cost 132,000 122,000 95,400 50,600 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:
Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 165,000 $ 151,000 $ 116,000 $ 78,000 Cost 139,000 137,000 75,400 54,600 Replacement cost 132,000 122,000 95,400 50,600 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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $ | 165,000 | $ | 151,000 | $ | 116,000 | $ | 78,000 | |||||||
| Cost | 139,000 | 137,000 | 75,400 | 54,600 | |||||||||||
| Replacement cost | 132,000 | 122,000 | 95,400 | 50,600 | |||||||||||
| 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
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$148,500.
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$139,000.
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$132,000.
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$107,250.
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