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Business, 12.12.2019 01:31 genyjoannerubiera
Data related to the inventories of mountain 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 48,000
replacement cost 120,000 130,000 110,000 50,000
sales commission 10 % 10 % 10 % 10 %
normal gross profit ratio 20 % 20 % 15 % 15
%
in applying the lower of cost or market rule, the inventory of boots would be valued at:
a) $135,000
b) $133,000
c) $130,000
d) $105,000
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Answers: 3
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Data related to the inventories of mountain ski equipment and supplies is presented below:
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