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 supplies would be valued at:
A) $45,000.
B) $54,000.
C) $41,000.
D) $60,000.

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 supplies would be valued at:
A) $45,000. 
B) $54,000. 
C) $41,000. 
D) $60,000.

Quizplus · Accepted Answer

NRV = $60,000 - ($60,000 × 10%) = $54,000
$45,000 cost is less than net realizable value of $54,000.

Data Related to the Inventories of Alpine Ski Equipment and Supplies