Data related to the inventories of Mountain Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 187,000 $ 157,000 $ 127,000 $ 67,000 Cost 131,500 136,500 93,500 51,500 Replacement cost 101,000 137,000 117,000 57,000 Sales commission 15 % 15 % 15 % 15 % Normal gross profit ratio 25 % 25 % 20 % 20 % In applying the lower of cost or market rule, the inventory of skis would be valued at:

The multiple choices are:

A) $135,000

B) $133,000

C) $130,000

D) $101,000

Option D,$101,000

Explanation:

The lower of cost or  market rule  implies that the closing inventory should be valued at lower of cost price or the marketing inclined values.

The market-inclined values are replacement or net realizable value.

Note that net realizable value is the estimated selling price less cost to complete the production and cost to sell(commission).

I have prepared a comparison table between the replacement cost,NRV and cost in the attached.

It is clear from the attached that skis would be valued at replacement cost of $101,000

answer; the above statement/question is ( true);

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi