Data Related To The Inventories Of Alpine Ski Equipment And Supplies Is Presented Below:

(Correct Answer Below)

Data Related To The Inventories Of Alpine Ski Equipment And Supplies Is Presented Below:

1. Skis 2. Boots 3. Apparel 4. Supplies Selling price 1. $180,000 2. $140,000 3. $120,000 4. $60,000 Cost 1. 128,000 2. 133,000 3. 90,000 4. 45,000 Replacement cost 1. 120,000 2. 130,000 3. 110,000 4. 41,000 Sales commission 1. 10% 2. 10% 3. 10% 4. 10% In applying the lower of cost and net realizable value rule, the inventory of skis would be valued at: $162,000. $128,000. $120,000. $180,000.
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$128,000. NRV = $180,000 - ($180,000 x 10%) = $162,000 $128,000 cost is less than $162,000 net realizable value. References

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