1) Calculate a business's inventory turnover rate if the opening inventory is valued at $1,800 and the closing inventory is valued at $1,400 for the month. There are $6,200 in purchases for the month. Assume that the restaurant has no adjustments to the cost of food sold from employee meals, promotions, etc.
1) Calculate a business's inventory turnover rate if the opening inventory is valued at $1,800 and the closing inventory is valued at $1,400 for the month. There are $6,200 in purchases for the month. Assume that the restaurant has no adjustments to the cost of food sold from employee meals, promotions, etc.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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solve within 30 mins.
![1) Calculate a business's inventory turnover rate if the
opening inventory is valued at $1,800 and the closing
inventory is valued at $1,400 for the month. There are
$6,200 in purchases for the month. Assume that the
restaurant has no adjustments to the cost of food sold
from employee meals, promotions, etc.
2) A restaurant purchases chicken breast four times
each week and conducts an inventory weekly. The
most recent week's deliveries have been:
Monday-20 # chicken at $1.87/#
Wednesday
25 #
chicken at $1.86/#
Friday-20 #
chicken at $1.92/#
Saturday 45 # chicken at $1.93/#
Calculate the possible values for 30 # of chicken left in
inventory on Sunday afternoon using the FIFO, LIFO,
weighted average, and most recent price methods.
Assuming the restaurant rotates stock properly,
provide the value using the actual price method as
well.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F212aa171-adbb-4744-831a-a06e34b28964%2F77379611-cc39-4710-ad4f-353113c2d032%2F347bcgi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1) Calculate a business's inventory turnover rate if the
opening inventory is valued at $1,800 and the closing
inventory is valued at $1,400 for the month. There are
$6,200 in purchases for the month. Assume that the
restaurant has no adjustments to the cost of food sold
from employee meals, promotions, etc.
2) A restaurant purchases chicken breast four times
each week and conducts an inventory weekly. The
most recent week's deliveries have been:
Monday-20 # chicken at $1.87/#
Wednesday
25 #
chicken at $1.86/#
Friday-20 #
chicken at $1.92/#
Saturday 45 # chicken at $1.93/#
Calculate the possible values for 30 # of chicken left in
inventory on Sunday afternoon using the FIFO, LIFO,
weighted average, and most recent price methods.
Assuming the restaurant rotates stock properly,
provide the value using the actual price method as
well.
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