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: Multiple Choice $162,000. $128,000. $120,000. $180,000.
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 skis would be valued at: Multiple Choice $162,000. $128,000. $120,000. $180,000.
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 | $ | 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:
Multiple Choice
-
$162,000.
-
$128,000.
-
$120,000.
-
$180,000.
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