Question

data related to the inventories of alpine ski equipment and supplis is presented below 180000 the inventory of skis would be valued at

Answer 1

$128,000

Explanation:

The computation of inventory of skis is shown below:-

NRV = Selling price - Sales commission

= $180,000 - ($180,000 × 10%)

= $180,000 - $18,000

= $162,000

Cost = $128,000

The cost which is $128,000 lower than $162,000 NRV

So, Inventory of Skis will be $128,000 which is Lower of cost or NRV

Therefore the correct answer is $128,000