Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:
(skis, boots, apparel, supplies)
selling price: (180,000; 150,000; 120,000; 60,000)
cost: (128,000; 133,000; 90,000; 45,000)
replacement cost: (120,000; 133,000; 110,000; 41,000)
sales commission: (120,000; 130,000; 110,000; 41,000)
normal gross profit ratio: (20%, 20%, 15%, 15%)
In applying the LCM rule, the inventory of boots would be valued at:
A. $135,000.
B. $133,000.
C. $130,000.
D. $105,000.
Answer: C. $130,000
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.