Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:
- In applying the lower of cost or net realizable value rule, the inventory of boots would be valued at:
A) $140,000.
B) $133,000.
C) $126,000.
D) $130,000.

Question

Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: 
- In applying the lower of cost or net realizable value rule, the inventory of boots would be valued at:
A) $140,000. 
B) $133,000. 
C) $126,000. 
D) $130,000.

Quizplus · Accepted Answer

NRV = $140,000 - ($140,000 × 10%) = $126,000
$126,000 net realizable value is less than $133,000 cost.

Data Related to the Inventories of Alpine Ski Equipment and Supplies