Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel
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Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: |
Skis | Boots | Apparel | Supplies | |
Selling price | $169,000 | $163,000 | $108,000 | $72,000 |
Cost | 139,000 | 141,000 | 75,600 | 46,800 |
Replacement cost | 130,000 | 116,000 | 95,600 | 42,800 |
Sales commission | 10% | 10% | 10% | 10% |
Normal gross profit ratio | 20% | 25% | 20% | 25% |
In applying the LCM rule, the inventory of skis would be valued at: |
a) | $130,000. |
b) | $139,000. |
c) | $152,100. |
d) | $118,300. |
Related Book For
Basic Finance An Introduction to Financial Institutions, Investments and Management
ISBN: 978-1285425795
11th Edition
Authors: Herbert B. Mayo
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