Question 1

Based on the following information: compute (a) Inventory turnover; (b) Average daily cost of merchandise sold; and (c) Number of days' sales in inventory for 2011. 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)...

Question 2

During August, the first month of the fiscal year, sales totaled $875,000 and the cost of merchandise available for sale totaled $700,000. Estimate the cost of the merchandise inventory as of August 31, based on an estimated gross profit rate of 45%.

Accepted Answer

The answer of During August, the first month of the...

Question 3

On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method:

Accepted Answer

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

Question 4

On the basis of the following data, determine the estimated cost of the inventory as of March 31 by the retail method, presenting details of the computation in good order.

Accepted Answer

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

Question 5

The following data were taken from Bowman Inc.
  Determine the inventory turnover ratio and the number of days' sales in inventory for Bowman Inc. Round to two decimal places.
Inventory turnover = Cost of merchandise sold / Average inventory
Inventory turnover = 894,000 / ((78,000 + 92,000)/2)
Inventory turnover = 894,000 / 85,000
Inventory turnover = 10.52

Accepted Answer

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

Quiz 7: Inventories

Based on the following information: compute (a) Inventory turnover; (b) Average daily cost of merchandise sold; and (c) Number of days' sales in inventory for 2011. Use a 365-day year. (d) If an inventory turnover of 12 is average for the industry, how is this company doing?

During August, the first month of the fiscal year, sales totaled $875,000 and the cost of merchandise available for sale totaled $700,000. Estimate the cost of the merchandise inventory as of August 31, based on an estimated gross profit rate of 45%.

On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method:

On the basis of the following data, determine the estimated cost of the inventory as of March 31 by the retail method, presenting details of the computation in good order.