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Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth. Net Sales Cost of Beginning Ending Inventory Published Target Average Goods Sold Inventory Inventory Inventory Turnover Rate Average Inventory 1. $500,000 $50,000 $70,000 $60,000 8.3 10.0 $50,000.00 2. $335,000 $48,000 $56,000 $52,000 6.4 6.0 Above 3. $1,200,000 $443,000 $530,000 Answer + Answer + 3.5 Answer + 4. $4,570,000 $854,000 $650,300 8.2 5. $258,400 $76,300 $43,500 Answer + Answer + 5.2 Answer + 6. $540,000 $133,250 $71,200 4.8 7. $1,329,000 $545,800 $387,120 Answer + Answer + 2.6 Answer + $884 500 $224 130 $134 900 5 9

Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth. Net Sales Cost of Beginning Ending Inventory Published Target Average Goods Sold Inventory Inventory Inventory Turnover Rate Average Inventory 1. $500,000 $50,000 $70,000 $60,000 8.3 10.0 $50,000.00 2. $335,000 $48,000 $56,000 $52,000 6.4 6.0 Above 3. $1,200,000 $443,000 $530,000 Answer + Answer + 3.5 Answer + 4. $4,570,000 $854,000 $650,300 8.2 5. $258,400 $76,300 $43,500 Answer + Answer + 5.2 Answer + 6. $540,000 $133,250 $71,200 4.8 7. $1,329,000 $545,800 $387,120 Answer + Answer + 2.6 Answer + $884 500 $224 130 $134 900 5 9

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth. Net Sales Ending Inventory Published Average Goods Sold Inventory Inventory Inventory Cost of Beginning Target Turnover Rate Average Inventory 1. $500,000 $50,000 $70,000 $60,000 8.3 10.0 $50,000.00 2. $335,000 $48,000 $56,000 $52,000 6.4 6.0 Above 3. $1,200,000 $443,000 $530,000 Answer + Answer + 3.5 Answer + 4. $4,570,000 $854,000 $650,300 8.2 5. $258,400 $76,300 $43,500 Answer + Answer + 5.2 Answer + 6. $540,000 $133,250 $71,200 4.8 7. $1,329,000 $545,800 $387,120 Answer + Answer + 2.6 Answer + 8. $884,500 $224,130 $134,900 5.9
Transcribed Image Text:Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth. Net Sales Ending Inventory Published Average Goods Sold Inventory Inventory Inventory Cost of Beginning Target Turnover Rate Average Inventory 1. $500,000 $50,000 $70,000 $60,000 8.3 10.0 $50,000.00 2. $335,000 $48,000 $56,000 $52,000 6.4 6.0 Above 3. $1,200,000 $443,000 $530,000 Answer + Answer + 3.5 Answer + 4. $4,570,000 $854,000 $650,300 8.2 5. $258,400 $76,300 $43,500 Answer + Answer + 5.2 Answer + 6. $540,000 $133,250 $71,200 4.8 7. $1,329,000 $545,800 $387,120 Answer + Answer + 2.6 Answer + 8. $884,500 $224,130 $134,900 5.9
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