In applying the lower of cost and net realizable value rule,the inventory of boots would be valued at:
A)$140,000.
B)$133,000.
C)$126,000.
D)$130,000.

Name: In applying the lower of cost and net realizable value rule,the inventory of boots would be valued at: A)$140,000. B)$133,000. C)$126,000. D)$130,000.
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Question

Quizplus · Accepted Answer

The lower of cost and net realizable value rule requires inventory to be valued at the lower amount between its cost and its net realizable value. Here, $126,000 is the lowest value.

In Applying the Lower of Cost and Net Realizable Value