Question 1

Based on the following information compute 
(a)inventory turnover,
(b)average daily cost of merchandise sold,and 
(c)days' sales in inventory for the current year.Use a 365-day year.
(d)If an inventory turnover of 12 is average for the industry,how is this company doing?

Accepted Answer

The answer of Based on the following information compute 
(a)inventory...

Question 2

During the taking of its physical inventory on December 31,Almond Supplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000.Indicate the effects of the misstatement on Almond Supplies Company's balance sheet and income statement for the year ended December 31.

Accepted Answer

The answer of During the taking of its physical inventory...

Question 3

The units of Manganese Plus available for sale during the year were as follows:​  There are 15 units of the product in the physical inventory at November 30.The periodic inventory system is used.Determine the difference in gross profit between the LIFO and FIFO inventory cost systems.

Accepted Answer

The answer of The units of Manganese Plus available for...

Question 4

Beginning inventory and purchases and sales data for T-shirts are as follows:​  Assuming the business maintains a periodic inventory system,calculate the cost of merchandise sold and ending inventory under the following assumptions: 
a. FIFO
b. LIFO
c. Average cost (round cost of merchandise sold and ending inventory to the nearest dollar)

Accepted Answer

The answer of Beginning inventory and purchases and sales data...

Question 5

Based on the following information,compute 
(a)inventory turnover 
(b)average daily cost of merchandise sold using a 365-day year and 
(c)days' sales in inventory.​Cost of merchandise sold $195,640Inventory:Beginning 20,500Ending 18,628

Accepted Answer

The answer of Based on the following information,compute 
(a)inventory turnover...

Question 6

The following data were taken from the annual reports of Big Bang Inc.,a manufacturer of fireworks,and Orange Inc.,a manufacturer of computers.​  (a)Determine the 
(1)inventory turnover and 
(2)days' sales in inventory for Big Bang and Orange.Round your answers to two decimal places.
(b)How would you expect these measures to compare between the companies? Why?

Accepted Answer

The answer of The following data were taken from the...

Question 7

Complete the chart,indicating whether LIFO or FIFO would give the highest and lowest amounts for each item,assuming a period of increasing costs.

Accepted Answer

The answer of Complete the chart,indicating whether LIFO or FIFO...

Question 8

The units of Product Green-2 available for sale during the year were as follows:​  There are 17 units of the product in the physical inventory at September 30.The periodic inventory system is used.Determine the cost of merchandise sold by the 
(a)FIFO,
(b)LIFO,and 
(c)average cost methods.

Accepted Answer

The answer of The units of Product Green-2 available for...

Question 9

Applying the lower of cost or market to each item of inventory,what should the total inventory value be for the following items?​

Accepted Answer

The answer of Applying the lower of cost or market...

Question 10

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

Accepted Answer

The answer of On the basis of the following data,determine...

Question 11

Hampton Co.took a physical count of its inventory on December 31.In addition,it had to decide whether or not the following items should be added to this count.​

Accepted Answer

The answer of Hampton Co.took a physical count of its...

Question 12

The following data were taken from Castle,Inc.Determine the inventory turnover ratio and the days' sales in inventory for Castle Inc.Round to two decimal places.

Accepted Answer

The answer of The following data were taken from Castle,Inc.Determine...

Question 13

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

Accepted Answer

The answer of On the basis of the following data,determine...

Question 14

a. Explain the effect of the following on the financial statements:​Goods held on consignment were included in the ending inventory count.​Goods purchased FOB shipping point were in transit on the last day of the year.These goods were not counted as part of ending inventory.​Goods sold FOB shipping point were in transit on the last day of the year.These goods were not counted as part of ending inventory.​​
b. What happens if inventory errors are not found and corrected?

Accepted Answer

The answer of a. Explain the effect of the following...

Question 15

Determine the total value of the merchandise using net realizable value.​

Accepted Answer

The answer of Determine the total value of the merchandise...

Question 16

A business using the retail method of inventory costing determines that merchandise inventory at retail is $2,300,000.If the ratio of cost to retail price is 55%,what is the amount of inventory to be reported on the financial statements?

Accepted Answer

The answer of A business using the retail method of...

Question 17

Basic inventory data for April 30 are presented below for a business that employs the lower-of-cost-or-market basis of inventory valuation to each category.​

Accepted Answer

The answer of Basic inventory data for April 30 are...

Question 18

Based on the following data,calculate the estimated cost of the merchandise inventory on March 31 using the retail method.

Accepted Answer

The answer of Based on the following data,calculate the estimated...

Question 19

On the basis of the following data for Sanford Industries as of December 31,determine the value of the inventory at the lower of cost or market.Also,show how the merchandise inventory would appear on the balance sheet 
(assume that the cost was determined by the FIFO method).Apply lower of cost or market to each inventory item.

Accepted Answer

The answer of On the basis of the following data...

Question 20

While taking a physical inventory,a company counts its inventory as less than the actual amount on hand.How will this error affect the income statement?

Accepted Answer

The answer of While taking a physical inventory,a company counts...

Quiz 7: Inventories

Based on the following information compute (a)inventory turnover, (b)average daily cost of merchandise sold,and (c)days' sales in inventory for the current year.Use a 365-day year. (d)If an inventory turnover of 12 is average for the industry,how is this company doing?

The units of Manganese Plus available for sale during the year were as follows: There are 15 units of the product in the physical inventory at November 30.The periodic inventory system is used.Determine the difference in gross profit between the LIFO and FIFO inventory cost systems.

Based on the following information,compute (a)inventory turnover (b)average daily cost of merchandise sold using a 365-day year and (c)days' sales in inventory.Cost of merchandise sold $195,640Inventory:Beginning 20,500Ending 18,628

Complete the chart,indicating whether LIFO or FIFO would give the highest and lowest amounts for each item,assuming a period of increasing costs.

The units of Product Green-2 available for sale during the year were as follows: There are 17 units of the product in the physical inventory at September 30.The periodic inventory system is used.Determine the cost of merchandise sold by the (a)FIFO, (b)LIFO,and (c)average cost methods.

Applying the lower of cost or market to each item of inventory,what should the total inventory value be for the following items?

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

Hampton Co.took a physical count of its inventory on December 31.In addition,it had to decide whether or not the following items should be added to this count.

The following data were taken from Castle,Inc.Determine the inventory turnover ratio and the days' sales in inventory for Castle Inc.Round to two decimal places.

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

Determine the total value of the merchandise using net realizable value.

A business using the retail method of inventory costing determines that merchandise inventory at retail is $2,300,000.If the ratio of cost to retail price is 55%,what is the amount of inventory to be reported on the financial statements?

Basic inventory data for April 30 are presented below for a business that employs the lower-of-cost-or-market basis of inventory valuation to each category.

Based on the following data,calculate the estimated cost of the merchandise inventory on March 31 using the retail method.

While taking a physical inventory,a company counts its inventory as less than the actual amount on hand.How will this error affect the income statement?

Quiz 7: Inventories

Based on the following information compute (a)inventory turnover, (b)average daily cost of merchandise sold,and (c)days' sales in inventory for the current year.Use a 365-day year. (d)If an inventory turnover of 12 is average for the industry,how is this company doing?

The units of Manganese Plus available for sale during the year were as follows:​ There are 15 units of the product in the physical inventory at November 30.The periodic inventory system is used.Determine the difference in gross profit between the LIFO and FIFO inventory cost systems.

Based on the following information,compute (a)inventory turnover (b)average daily cost of merchandise sold using a 365-day year and (c)days' sales in inventory.​Cost of merchandise sold $195,640Inventory:Beginning 20,500Ending 18,628

Complete the chart,indicating whether LIFO or FIFO would give the highest and lowest amounts for each item,assuming a period of increasing costs.

The units of Product Green-2 available for sale during the year were as follows:​ There are 17 units of the product in the physical inventory at September 30.The periodic inventory system is used.Determine the cost of merchandise sold by the (a)FIFO, (b)LIFO,and (c)average cost methods.

Applying the lower of cost or market to each item of inventory,what should the total inventory value be for the following items?​

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

Hampton Co.took a physical count of its inventory on December 31.In addition,it had to decide whether or not the following items should be added to this count.​

The following data were taken from Castle,Inc.Determine the inventory turnover ratio and the days' sales in inventory for Castle Inc.Round to two decimal places.

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

Determine the total value of the merchandise using net realizable value.​

A business using the retail method of inventory costing determines that merchandise inventory at retail is $2,300,000.If the ratio of cost to retail price is 55%,what is the amount of inventory to be reported on the financial statements?

Basic inventory data for April 30 are presented below for a business that employs the lower-of-cost-or-market basis of inventory valuation to each category.​

Based on the following data,calculate the estimated cost of the merchandise inventory on March 31 using the retail method.

While taking a physical inventory,a company counts its inventory as less than the actual amount on hand.How will this error affect the income statement?

The units of Manganese Plus available for sale during the year were as follows: There are 15 units of the product in the physical inventory at November 30.The periodic inventory system is used.Determine the difference in gross profit between the LIFO and FIFO inventory cost systems.

Based on the following information,compute (a)inventory turnover (b)average daily cost of merchandise sold using a 365-day year and (c)days' sales in inventory.Cost of merchandise sold $195,640Inventory:Beginning 20,500Ending 18,628

The units of Product Green-2 available for sale during the year were as follows: There are 17 units of the product in the physical inventory at September 30.The periodic inventory system is used.Determine the cost of merchandise sold by the (a)FIFO, (b)LIFO,and (c)average cost methods.

Applying the lower of cost or market to each item of inventory,what should the total inventory value be for the following items?

Hampton Co.took a physical count of its inventory on December 31.In addition,it had to decide whether or not the following items should be added to this count.

Determine the total value of the merchandise using net realizable value.

Basic inventory data for April 30 are presented below for a business that employs the lower-of-cost-or-market basis of inventory valuation to each category.