TB MC Qu. 9-61 (Algo) Data related to the inventories of Alpine...Data related to the inventories of Alpine Ski Equipment and Supplies is presentedbelow:Selling priceCostReplacement costSales commissionMultiple Choice$48,350.$47,350.$51,350.Skis$ 179,000130,000116,000$71,100.10%Boots$ 155,000142,000128,00010%In applying the lower of cost or net realizable value rule, the inventory of supplieswould be valued at:Apparel$ 105,00073,50093,50010%Supplies$ 79,00051,35047,35010%

As per IFRS, inventory should be reported at cost or net realizable value (i.e. NRV) whichever is…

Answered: In applying the lower of cost or net…

In applying the lower of cost or net realizable value rule, the inventory of supplies would be valued at: Multiple Choice O $48,350. $47,350. $51,350. $71,100.

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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Question

TB MC Qu. 9-61 (Algo) Data related to the inventories of Alpine...
Data related to the inventories of Alpine Ski Equipment and Supplies is presented
below:
Selling price
Cost
Replacement cost
Sales commission
Multiple Choice
$48,350.
$47,350.
$51,350.
Skis
$ 179,000
130,000
116,000
$71,100.
10%
Boots
$ 155,000
142,000
128,000
10%
In applying the lower of cost or net realizable value rule, the inventory of supplies
would be valued at:
Apparel
$ 105,000
73,500
93,500
10%
Supplies
$ 79,000
51,350
47,350
10%

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