Data related to the inventories of Alpine Ski Equipment is shown below: SkisBootsApparelSuppliesSelling price$180,000$150,000$120,000$60,000Cost128,000133,00090,00045,000Replacement cost120,000130,000110,00041,000Sales commission10%10%10%10%Normal gross profit ratio20%20%15%15% In applying the LCM rule, the inventory of skis would be valued at: In applying the LCM rule, the inventory of boots would be valued at:

Question
Asked Nov 9, 2019
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Data related to the inventories of Alpine Ski Equipment is shown 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

130,000

110,000

41,000

Sales commission

10%

10%

10%

10%

Normal gross profit ratio

20%

20%

15%

15%

 

  1. In applying the LCM rule, the inventory of skis would be valued at: 
  2. In applying the LCM rule, the inventory of boots would be valued at:
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Expert Answer

Step 1

Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company in the course of regular business activities.

 

Cost of goods...

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