Question 1

The average inventory at retail for The New Age Furniture Store was $2,575,350. The turnover rate at retail was 3.0, based on net sales of $7,726,050. The published inventory turnover at retail is 4.9. Since the actual turnover rate is less than the published rate, calculate the target average inventory at retail.(Round your answer to the nearest dollar)

Accepted Answer

The target average inventory at retail can be calculated using the formula: Net Sales / Published Inventory Turnover. So, $7,726,050 / 4.9 = $1,576,744.90, which rounds to $1,576,745.

Question 2

Kidz Korner had net sales of $3,001,680 for the year. If the beginning inventory at retail was $241,700 and the ending inventory at retail was $592,100, find the inventory turnover at retail. (Round your answer to the nearest tenth)

Accepted Answer

The answer of Kidz Korner had net sales of $3,001,680...

Question 3

Cost of goods sold for Eastern Distributors was $2,225,000 for the year. If the beginning inventory at cost was $750,225 and the ending inventory at cost was $625,995, find the inventory turnover at cost. (Round your answer to the nearest tenth)

Accepted Answer

The answer of Cost of goods sold for Eastern Distributors...

Question 4

Calculate the total number of units available for sale and the cost of goods available for sale from the inventory of peat moss for D.J.'s Nurseries: $\begin{array}{llcc}
  \text { D.J.'s Nurseries } &  \
 \text {Peat Moss Inventory  } &\
\end{array}$

$\begin{array}{llll}
\text { Date } & \text { Units } & \text { Cost per Unit } & \text { Total Cost } \
\hline \text { Beginning Inventory, January } 1 & 200 & \$ 11.46 \
\text { Purchase, March } 10 & 160 & \$ 11.70 \
\text { Purchase, May 16 } & 180 & \$ 12.10 \
\text { Purchase, October } 8 & 250 & \$ 12.50 \
\text { Purchase, December 6 } & 150 & \$ 12.40
\end{array}$  
A)Total units available: _______
B)Cost of goods available for sale: _______

Accepted Answer

The answer of Calculate the total number of units available...

Question 5

At the start of the year, Sandy's Flowers had inventory worth $587,200 at retail. On December 31, the retail value of the inventory was $137,700. If annual sales amounted to $2,899,600 find the inventory turnover at retail for the year. (Round your answer to the nearest tenth)

Accepted Answer

The inventory turnover at retail is calculated by dividing the cost of goods sold by the average inventory at retail. First, find the cost of goods sold (COGS) at retail: COGS = Opening Inventory + Purchases - Closing Inventory. Since no purchases are mentioned, we assume all sales are from the existing inventory, so COGS = Sales = $2,899,600. The average inventory = (Opening Inventory + Closing Inventory) / 2 = ($587,200 + $137,700) / 2 = $362,450. Inventory turnover = COGS / Average Inventory = $2,899,600 / $362,450 ≈ 8.0.

Question 6

The net sales for Casual Fashions, Inc. last year amounted to $1,126,800 and the average inventory at retail was $212,604. The published inventory turnover at retail is 6. Calculate the inventory turnover at retail, and if it is less than the published rate, calculate the target average inventory at retail. (Round your answer to the nearest dollar)

Accepted Answer

The inventory turnover at retail is calculated as net sales divided by average inventory at retail, which is $1,126,800 / $212,604 = 5.3. Since 5.3 is less than the published rate of 6, the target average inventory at retail is calculated as net sales divided by the published turnover rate, which is $1,126,800 / 6 = $187,800.

Question 7

Cost of goods sold for Abe Distributors was $538,330 for the year. If the beginning inventory at cost was $112,700 and the ending inventory at cost was $301,400, find the inventory turnover at cost. (Round your answer to the nearest tenth)

Accepted Answer

Inventory turnover at cost is calculated as Cost of Goods Sold divided by Average Inventory. Average Inventory = (Beginning Inventory + Ending Inventory) / 2 = ($112,700 + $301,400) / 2 = $207,050. Inventory Turnover = $538,330 / $207,050 ≈ 2.6 times.

Question 8

The average inventory at retail for Modern Age Furniture was $1,389,008. The turnover rate at retail was 2.6, based on net sales of $3,611,420. The published inventory turnover at retail is 5.3. Since the actual turnover rate is less than the published rate, calculate the target average inventory at retail. (Round your answer to the nearest dollar)

Accepted Answer

The target average inventory at retail can be calculated using the formula: Target Inventory = Net Sales / Published Turnover Rate. So, $3,611,420 / 5.3 = $681,400.

Question 9

The cost of goods sold for Home Depot last year amounted to $3,530,800 and the average inventory at cost was $1,574,182. The published inventory turnover at cost is 5.2. Calculate the inventory turnover at cost, and if it is less than the published rate, calculate the target average inventory at cost. (Round your answer to the nearest dollar)

Accepted Answer

The answer of The cost of goods sold for Home...

Question 10

Lucent Technology maintains a gross margin of 40% on all of its merchandise. In April the company had a beginning inventory of $518,700, net purchases of $312,400, and net sales of $750,400. Use the gross profit method to estimate the cost of ending inventory as of March 31.

Accepted Answer

The gross profit method is used to estimate the cost of ending inventory by subtracting the gross profit from the net sales. The gross profit is calculated by multiplying the net sales by the gross margin percentage. In this case, the gross margin percentage is 40%, so the gross profit is $750,400 x 0.40 = $300,160. The cost of ending inventory is then calculated by subtracting the gross profit from the net sales: $750,400 - $300,160 = $450,240.

Question 11

Winston, Inc. had net sales of $754,800 for the year. If the beginning inventory at retail was $171,400 and the ending inventory at retail was $331,800, find the inventory turnover at retail. (Round your answer to the nearest tenth)

Accepted Answer

The answer of Winston, Inc. had net sales of $754,800...

Question 12

The average inventory at retail for Flying Fishes Inc. was $260,510. The turnover rate at retail was 5.1, based on net sales of $1,328,600. The published inventory turnover at retail is 7. Since the actual turnover rate is less than the published rate, find the target average inventory at retail.(Round your answer to the nearest dollar)

Accepted Answer

The target average inventory at retail can be calculated using the formula for inventory turnover at retail, which is net sales divided by average inventory at retail. Given a published inventory turnover rate of 7 and net sales of $1,328,600, the target average inventory at retail is calculated as $1,328,600 / 7 = $189,800 (rounded to the nearest dollar).

Question 13

Calculate the inventory turnover at cost for Ricky's Department Store. The starting inventory at cost was $485,800 and the ending inventory at cost was $236,000. Cost of goods sold for the year totaled $2,670,660. (Round your answer to the nearest tenth)

Accepted Answer

The inventory turnover ratio is calculated as the cost of goods sold divided by the average inventory. The average inventory is the sum of the starting and ending inventory divided by 2. So, the average inventory is ($485,800 + $236,000) / 2 = $360,900. The inventory turnover ratio is then $2,670,660 / $360,900 = 7.4.

Question 14

At the beginning of the year, American International had inventory worth $325,500 at cost. At the end of the year, the cost value of the inventory was $540,250. If annual cost of goods sold was $1,978,250 find the inventory turnover at cost for the year. (Round your answer to the nearest tenth)

Accepted Answer

The inventory turnover at cost is calculated as the cost of goods sold divided by the average inventory. The average inventory is ($325,500 + $540,250) / 2 = $432,875. The inventory turnover is $1,978,250 / $432,875 = 4.6.

Question 15

The average inventory at cost for Western Gear, Inc. was $367,985. The turnover rate at cost was 3.4, based on cost of goods sold of $1,251,150. The published inventory turnover at cost is 5.7. Since the actual turnover rate is less than the published rate, calculate the target average inventory at cost. (Round your answer to the nearest dollar)

Accepted Answer

The target average inventory at cost can be calculated using the formula: Cost of Goods Sold / Inventory Turnover Rate. Given the cost of goods sold is $1,251,150 and the published inventory turnover rate is 5.7, the calculation is $1,251,150 / 5.7 = $219,500 (rounded to the nearest dollar).

Question 16

At the start of the year, Bottom Dollar Discounters had inventory worth $197,400 at retail. On December 31, the retail value of the inventory was $318,100. If annual sales amounted to $1,907,350 find the inventory turnover at retail for the year. (Round your answer to the nearest tenth)

Accepted Answer

Inventory turnover at retail is calculated as annual sales divided by the average inventory value. The average inventory value is ($197,400 + $318,100) / 2 = $257,750. The turnover is $1,907,350 / $257,750 = 7.4.

Question 17

Cost of goods sold for Century Merchandise Mart was $874,510 for the year. If the beginning inventory at cost was $561,900 and the ending inventory at cost was $302,300, find the inventory turnover at cost. (Round your answer to the nearest tenth)

Accepted Answer

Inventory turnover at cost = Cost of goods sold / Average inventoryAverage inventory = (Beginning inventory + Ending inventory) / 2= ($561,900 + $302,300) / 2= $432,100Inventory turnover at cost = $874,510 / $432,100= 2.0 times

Question 18

The current inventory turnover at retail for The Sports Authority is 4.7, based on net sales of $3,551,130. The published inventory turnover at retail is 5.1. Since the actual turnover rate is less than the published rate, find the target average inventory at retail. (Round your answer to the nearest dollar)

Accepted Answer

To find the target average inventory at retail, you use the formula for inventory turnover at retail, which is net sales divided by average inventory at retail. Given the desired turnover rate is 5.1 and net sales are $3,551,130, you rearrange the formula to solve for average inventory: Average Inventory = Net Sales / Desired Turnover Rate = $3,551,130 / 5.1 ≈ $696,300.

Question 19

Cost of goods sold for Califant Industries was $989,420 for the year. If the beginning inventory at cost was $603,700 and the ending inventory at cost was $414,200, find the inventory turnover at cost. (Round your answer to the nearest tenth)

Accepted Answer

The answer of Cost of goods sold for Califant Industries...

Question 20

Cost of goods sold for Galaxy Manufacturers was $3,545,000 for the year. If the beginning inventory at cost was $950,250 and the ending inventory at cost was $735,875, find the inventory turnover at cost. (Round your answer to the nearest tenth)

Accepted Answer

The inventory turnover ratio is calculated as the cost of goods sold divided by the average inventory. Average inventory is the sum of beginning and ending inventory divided by 2. So, average inventory = ($950,250 + $735,875) / 2 = $1,693,062.5. Inventory turnover = $3,545,000 / $1,693,062.5 = 2.093, rounding to the nearest tenth gives 2.1, which is not an option provided, indicating a mistake in calculation or interpretation. Correctly recalculating: Inventory turnover = Cost of Goods Sold / Average Inventory = $3,545,000 / (($950,250 + $735,875) / 2) = $3,545,000 / $843,062.5 = 4.2 times.

Quiz 16: Inventory