In applying the LCM rule, the inventory of skis would be valued at:
A)$162,000.
B)$128,000.
C)$120,000.
D)$126,000.

Question

Quizplus · Accepted Answer

Using the LCM rule:
LCM(12, 16) = 48
48/12 = 4
48/16 = 3
Valuation at cost:
12 skis @ $6,000 = $72,000
16 skis @ $5,500 = $88,000
4 skis @ $6,000 = $24,000
3 skis @ $5,500 = $16,500
Total valuation = $72,000 + $88,000 + $24,000 + $16,500 = $200,500
Therefore, the closest option is D) $126,000.

In Applying the LCM Rule, the Inventory of Skis Would