Question 1

Barnett Company had the following records: $\begin{array}{lll}&2022&2021\
\text { Ending inventory } & \$ 32,650 & \$ 30,490 \
\text { Cost of qoods sold } & 306,300 & 313,600
\end{array}$ What is Barnett's average days in inventory for 2022? (rounded)
A)37.6 days
B)38.8 days
C)36.9 days
D)36.5 days

Accepted Answer

Average days in inventory = (Ending inventory + Beginning inventory) / 2 * 365 days / Cost of goods sold= (32,650 + 30,490) / 2 * 365 days / 306,300= 31,570 / 306,300 * 365 days= 37.6 days (rounded)

Question 2

An aircraft company would most likely have a
A)high inventory turnover.
B)low profit margin.
C)high volume.
D)low inventory turnover.

Accepted Answer

An aircraft company would have a low inventory turnover because the production process of an aircraft is complex and time-consuming. Therefore, the company would need to keep a large inventory of parts and materials for a longer period in order to complete the production.

Question 3

Use the following information regarding Black Company and Red Company to answer the question "Which of the following is Red Company's "cost of goods sold" for 2022 (to the closest dollar)?" $$\begin{array}{l}
\begin{array} { | l | c | c | c | } 
\hline & \text { Year } & \begin{array} { c } 
\text { Inventory } \
\text { Turnover }
\end{array} & \text { Ending Inventory } \
\hline \text { Black Company } & 2020 & & \$ 26,340 \
\hline & 2021 & 8.7 & \$ 29,890 \
\hline & 2022 & 8.4 & \$ 30,100 \
\hline
\
\hline \text { Red Company } & 2020 & & \$ 25,860 \
\hline & 2021 & 7.0 & \$ 24,750 \
\hline & 2022 & 7.5 & \$ 22,530 \
\hline
\end{array}
\end{array}$$
A)$260043
B)$189788
C)$168975
D)$177300

Accepted Answer

The answer of Use the following information regarding Black Company...

Question 4

The following information was available for Bowyer Company at December 31 2022: beginning inventory $90000; ending inventory $70000; cost of goods sold $800000; and sales $1100000.Bowyer's days in inventory in 2022 was
A)26.4 days.
B)36.5 days.
C)32.0 days.
D)41.0 days.

Accepted Answer

The answer of The following information was available for Bowyer...

Question 5

Barnett Company had the following records: $$\begin{array} { l c c } 
& \underline { 2022 } & \underline { 2021 } \
\text { Ending inventory } & \$ 32,650 & \$ 30,490 \
\text { Cost of goods sold } & 306,300 & 313,600
\end{array}$$ What is Barnett's inventory turnover for 2022? (rounded)
A)9.4 times
B)9.7 times
C)9.9 times
D)10.0 times

Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Average Inventory for 2022 is $(32,650 + 30,490) / 2 = 31,570$. Inventory Turnover = $306,300 / 31,570 \approx 9.7$ times.

Question 6

The following information was available for Camara Company at December 31 2022: beginning inventory $80000; ending inventory $120000; cost of goods sold $630000; and sales $900000.Camara's days in inventory in 2022 was
A)40.6 days.
B)46.2 days.
C)57.9 days.
D)68.9 days.

Accepted Answer

The answer of The following information was available for Camara...

Question 7

A low number of days in inventory may indicate all of the following except A)Sales opportunities may be lost because of inventory shortages. B)There is less chance of having obsolete inventory items. C)The company has fewer funds tied up in inventory. D)Management has achieved the best balance between too much and too little inventory levels.

Accepted Answer

The answer of A low number of days in inventory...

Question 8

The following information was available for Camara Company at December 31 2022: beginning inventory $80000; ending inventory $120000; cost of goods sold $630000; and sales $900000.Camara's inventory turnover in 2022 was
A)9.0 times.
B)7.9 times.
C)6.3 times.
D)5.3 times.

Accepted Answer

The answer of The following information was available for Camara...

Question 9

The following information was available for Bowyer Company at December 31 2022: beginning inventory $90000; ending inventory $70000; cost of goods sold $800000; and sales $1100000.Bowyer's inventory turnover in 2022 was
A)13.8 times.
B)10.0 times.
C)11.4 times.
D)8.9 times.

Accepted Answer

The answer of The following information was available for Bowyer...

Question 10

Redeker Company had the following records: $\begin{array}{lll}&2022&2021\
\text { Ending inventory } & \$ 32,650 & \$ 30,490 \
\text { Cost of qoods sold } & 213,600 & 209,040
\end{array}$ What is Redeker's average days in inventory for 2022? (rounded)
A)53.7 days
B)56.2 days
C)55.3 days
D)52.1 days

Accepted Answer

Average days in inventory = (Ending inventory + Beginning inventory) / 2 * 365 days / Cost of goods sold= (32,650 + 30,490) / 2 * 365 days / 213,600= 55.3 days

Question 11

Days in inventory is calculated by dividing 365 days by
A)average inventory.
B)beginning inventory.
C)ending inventory.
D)the inventory turnover.

Accepted Answer

The answer of Days in inventory is calculated by dividing...

Question 12

Which of these would cause the inventory turnover ratio to increase the most?
A)Increasing the amount of inventory on hand.
B)Keeping the amount of inventory on hand constant but increasing sales.
C)Keeping the amount of inventory on hand constant but decreasing sales.
D)Decreasing the amount of inventory on hand and increasing sales.

Accepted Answer

The inventory turnover ratio is calculated as Cost of Goods Sold divided by Average Inventory. If the amount of inventory on hand is decreased and sales are increased, the ratio will increase the most because the numerator (Cost of Goods Sold) will remain constant or increase, while the denominator (Average Inventory) will decrease.

Question 13

Which of the following companies would most likely have the highest inventory turnover?
A)An art gallery.
B)An automobile manufacturer.
C)A piano manufacturer.
D)A bakery.

Accepted Answer

A bakery would most likely have the highest inventory turnover because their products have a short shelf life and need to be sold quickly to prevent waste.

Question 14

The inventory turnover is calculated by dividing cost of goods sold by
A)beginning inventory.
B)ending inventory.
C)average inventory.
D)365 days.

Accepted Answer

The inventory turnover ratio is a measure of how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory during a given period. Using the beginning or ending inventory alone does not give an accurate picture of a company's inventory management over the entire period, which is why the average inventory is used. Therefore, the best choice is C.

Question 15

Redeker Company had the following records: $\begin{array}{lll}&2022&2021\
\text { Ending inventory } & \$ 32,650 & \$ 30,490 \
\text { Cost of qoods sold } & 213,600 & 209,040
\end{array}$ What is Redeker's inventory turnover for 2022? (rounded)
A)6.8 times
B)7.0 times
C)6.6 times
D)6.5 times

Accepted Answer

Inventory turnover = Cost of goods sold / Average inventoryAverage inventory = (Beginning inventory + Ending inventory) / 2Average inventory = (30,490 + 32,650) / 2 = 31,570Inventory turnover = 213,600 / 31,570 = 6.8 times

Quiz 6: Reporting and Analyzing Long-Lived Assets

Barnett Company had the following records: $\begin{array}{lll}&2022&2021\\\text { Ending inventory } & \$ 32,650 & \$ 30,490 \\\text { Cost of qoods sold } & 306,300 & 313,600\end{array}$ What is Barnett's average days in inventory for 2022? (rounded)

An aircraft company would most likely have a

The following information was available for Bowyer Company at December 31 2022: beginning inventory $90000; ending inventory $70000; cost of goods sold $800000; and sales $1100000.Bowyer's days in inventory in 2022 was

Barnett Company had the following records: $\begin{array} { l c c } & \underline { 2022 } & \underline { 2021 } \\\text { Ending inventory } & \$ 32,650 & \$ 30,490 \\\text { Cost of goods sold } & 306,300 & 313,600\end{array}$ What is Barnett's inventory turnover for 2022? (rounded)

The following information was available for Camara Company at December 31 2022: beginning inventory $80000; ending inventory $120000; cost of goods sold $630000; and sales $900000.Camara's days in inventory in 2022 was

A low number of days in inventory may indicate all of the following except

The following information was available for Camara Company at December 31 2022: beginning inventory $80000; ending inventory $120000; cost of goods sold $630000; and sales $900000.Camara's inventory turnover in 2022 was

The following information was available for Bowyer Company at December 31 2022: beginning inventory $90000; ending inventory $70000; cost of goods sold $800000; and sales $1100000.Bowyer's inventory turnover in 2022 was

Redeker Company had the following records: $\begin{array}{lll}&2022&2021\\\text { Ending inventory } & \$ 32,650 & \$ 30,490 \\\text { Cost of qoods sold } & 213,600 & 209,040\end{array}$ What is Redeker's average days in inventory for 2022? (rounded)

Days in inventory is calculated by dividing 365 days by

Which of these would cause the inventory turnover ratio to increase the most?

Which of the following companies would most likely have the highest inventory turnover?

The inventory turnover is calculated by dividing cost of goods sold by

Redeker Company had the following records: $\begin{array}{lll}&2022&2021\\\text { Ending inventory } & \$ 32,650 & \$ 30,490 \\\text { Cost of qoods sold } & 213,600 & 209,040\end{array}$ What is Redeker's inventory turnover for 2022? (rounded)