5. PE.07-08BH Show Me HoweBookInventory Turnover and Days' Sales in InventoryFinancial statement data for years ending December 31 for Tango Company follows:20Y720Y6Cost of merchandise sold$3,864,000$4,001,500Inventories:Beginning of year770,000740,000End of year৪40,000770,000a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place.Inventory Turnover20Y720Y6b. Determine the days' sales in inventory for 20Y7 and 20Y6. Assume 365 days a year.Round interim calculations and final answers to one decimal place.Days' Sales in Inventory20Y7days20Y6daysc. Does the change in inventory turnover and the days' sales in inventory from 20Y6 to20Y7 indicate a favorable or an unfavorable trend?

a) 20Y7 20Y6 Cost of goods sold (a) $3,864,000 $4,001,500 Inventory at beginning $770,000…

Answered: 5. PE.07-08B H Show Me How eBook…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. The following information relates to the one typy of inventory of Toy Ltd during the month of May 2022. Ignore GST. 1/5 Beginning inventory 10/5 Purchase 15/5 Purchase 23/5 Purchase Totals Units 2,520 1,800 1,080 1,800 7,200 Units cost ($) 33 34.8 36.6 39 Total cost ($) 83,160 62,640 39,528 70,200 $255,528 Toy Ltd has adopted the Periodic Inventory System. A physical count on 31 May verified that 2160 units of the type of inventory were on hand. Required: a) Determine the Ending inventory and Cost of Sales for the month of May, using the FIFO costing method. b) Discuss at least 4 differences between Perpetual and Periodic Inventory systems. Your comparison should be based on aspects such as recording keeping, internal control, end of period process and business opportunity etc.
Inventory turnover and number of days’ sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 20Y7 20Y6 Cost of goods sold $3,864,000 $4,001,500 Inventories: Beginning of year 770,000 740,000 End of year 840,000 770,000 Required a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Y7 20Y6 Inventory turnover b. Determine the number of days’ sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. 20Y7 20Y6 Number of days’ sales in inventory 3 days 4 days
1. PAKIALAMERA KO Company provided the following data for the current year: Inventory, January 1 P2,000,000, Purchases P7,500,000, Purchase Returns and Allowances P500,000, Sales returns and allowances P750,000, Inventory, December 31 P2,800,000, Gross profit rate 20%. What is the amount of Cost of goods sold?
Inventory Analysis A company reports the following: Cost of goods sold $464,280 Average inventory 77,380 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover fill in the blank 1 b. Number of days' sales in inventory fill in the blank 2 days
Calculating inventory turnover A7X corporation has ending inventory of $625,817, the cost of goods sold for the year just ended was $9,758,345. What is the inventory turnover? The days sales in inventory? How long, on average, did a unit of inventory sit on the shelf before it was sold?
Calculate inventory turnover at cost (to nearest hundredth, format as 1.23 that's it, it's a ratio): Ending inventory $25,000 Cost of goods sold $43,000 Beginning inventory $15,000 Net sales $55,800
Inventory Analysis A company reports the following: Cost of goods sold $478,150 Average inventory 95,630 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover b. Number of days' sales in inventory days
Perpetual Inventory Using Weighted Average Beginning inventory, purchases, and sales for J101 are as follows: Oct. 1 Inventory 480 units at $14 13 Sale 280 units 22 Purchase 600 units at $16 29 Sale 450 units a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your answer to two decimal places. per unit b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of the merchandise sold on October 29. Round your "average unit cost" to two decimal places. c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two decimal places.
Solve for the missing information designated by "?" in the following table. (Use 365 days in a year. Round the inventory turnover ratio to one decimal place before computing days to sell. Round days to sell to one decimal place.) Case a. b. C. $ $ Beginning Inventory Purchases 200 $ 300 900 Cost of Goods Sold $ $ $ 900 $ 1,600 1,400 $ Ending Inventory 200 100 Inventory Turnover Ratio 8.0 Days to Sell 26.1
Inventory Analysis A company reports the following: Cost of goods sold $800,445 Average inventory 94,170 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover fill in the blank 1 b. Number of days' sales in inventory fill in the blank 2 days
The financial statements of CVS Caremark reported the following information (in millions): CVS Caremark Year 2 Year 1 Net sales $126,761 $123, 120 Cost of sales 102,978 100,632 Inventories, net 11, 045 11,032 The inventory turnover ratio for Year 2 is: Group of answer choices 9.33 8.32 10.22 11.48
Please answer complete

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS