Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

Skis Boots Apparel Supplies
Selling price $180,000 $140,000 $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%

In applying the lower of cost and net realizable value rule, the inventory of skis would be valued at:

$120,000.

$128,000.

$162,000.

$180,000.

Data related to the inventories of Costco Medical Supply are presented below:

Surgical
Equipment Surgical
Supplies Rehab
Equipment Rehab
Supplies
Selling price $260 $100 $340 $165
Cost 170 90 250 162
Costs to sell 30 15 25 10

In applying the lower of cost and net realizable value rule, the inventory of surgical equipment would be valued at:

$152.

$240.

$170.

$230.

Montana Co. has determined its year-end inventory on a FIFO basis to be $616,000. Information pertaining to that inventory is as follows:

Selling price $610,000
Costs to sell 39,000
Replacement cost 535,000

What should be the reported value of Montana’s inventory?
$610,000.

$535,000.

$571,000.

$600,000.

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.

Describe what fixed costs and marginal costs mean to a company.

The adjusted trial balance for china tea company at december 31, 2018, is presented below: