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 apparel would be valued at:
A) $108,000.
B) $90,000.
C) $110,000.
D) $99,000.

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 apparel would be valued at:
A) $108,000. 
B) $90,000. 
C) $110,000. 
D) $99,000.

Quizplus · Accepted Answer

NRV = $120,000 - ($120,000 × 10%) = $108,000
$90,000 cost is less than net realizable value of $108,000 cost.

Data Related to the Inventories of Alpine Ski Equipment and Supplies