Calculate the inventory days on hand, assuming: Calculate the Inventory Days on hand, assuming:SalesGross Margin$400,00050%Opening Inventory $40,000Closing Inventory $60,000a. 365 Daysb. 4 Daysc. 91 Daysd. 50 Days

Step 1: Define InventoryAll the items that a business keeps on hand for production or sales to…

Answered: Calculate the Inventory Days on hand,…

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

Hii ticher please given answer
A company has an average inventory on hand of P100,000 and the days in inventory are 73 days. What is the cost of goods sold? * Choices: P3,650,000 P1,000,000 P500,000 P7,300,000
Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Item cost Order cost Annual holding cost (N) Annual demand Average demand $ 11.00 $257.00 33 26,600 532 Standard deviation of weekly denand Lead time Service probability 30 units /order % of item cost units /week 2 week 98% a. Determine the order quantity and reorder point. (Use Excel's NORMSINV( ) function to find your z-value and then round that z- value to 2 decimal places. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.) Optimal order quantity units units Reorder point b. Determine the annual holding and order costs. (Do not round any intermediate calculations. Round your final answers to 2 decimal places.) Holding cost Ordering cost C. Assume a price break of $60 per order was offered for purchase quantities of 2,000 units per order. If you took advantage of this price break, how much would you save annually? (Do…
1 A firm uses an inventory item with the following characteristics. Cost per-item $ 6.00 Annual consumption 1,000 Fixed cost per order placed $30.00 Carrying cost of inventory (as a % of dollar value) 25% How many times should the product be reordered each year and what are the related ordering and carrying costs of inventory?
Given the following informations annual sales in units 30,000 cost of placing an order $60,00 per unit carrying costs $ 1.50 Existing units of safety stock 300 a what is the EOQ? b. what is the average inventory based on the EOQ and the existing safety stock c. what is the maximum level of inventory? d. how many orders are placed each year?
Beginning Ending Inventory $27,000 $28,000 Accts. Rec. 21,000 22,000 Accts. Pay. 10,000 14,000 Credit Sales = $175,000 COGS $125,000 = How many days are in the payables period? 21 days 24 days 28 days 35 days 41 days
Compute the average days in inventory rounded to the nearest whole day based on the following data: Sales revenue $275,000 Cost of goods sold 100,000 Beginning inventory 35,000 Ending inventory 45,000
Beginning Inventory at FIFO: 15 Units @ $16 = $240 Beginning Inventory at LIFO: 15 Units @ $12 = $1801. Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. 2. Which costing method is the more accurate indicator of the efficiency of inventory management?
3. The Inventory Company' data are as follows: Average re-order period Optimum number of orders per year Average daily usage Cost to store one unit per year Cost of stock out per unit per time` Usage during re-order period 80 90 100 115 125 150 175 Frequency 4 6 10 35 20 15 10 25 days 10 per year 4 units $5 P20 0
Calculate the inventory-to-sale conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000. 240 days 180 days 90 days 60 days
Average Inventory, Inventory Turnover Ratio, Inventory Turnover in Days Delater Company had sales of $4,540,591 and a gross margin of $1,589,207. Delater had beginning inventory of $56,091 and ending inventory of $75,168. Required: Assume 365 days per year. 1. Calculate the average inventory. If required, round your answer to nearest whole dollar.fill in the blank 1 of 1$ 2. Calculate the inventory turnover ratio. Round to one decimal place.fill in the blank 1 of 1 times 3. Calculate the inventory turnover in days. Round to one decimal place.fill in the blank 1 of 1 days
Assume a firm's inventory level of $11,000 represents 32 days' sales. Required: a. What is the annual cost of goods sold? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to whole number.) b. What is the inventory turnover ratio? (Round your answer to 2 decimal places.) Annual cost of goods sold Inventory turnover ratio times per year

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

Calculate the Inventory Days on hand, assuming: Sales Gross Margin $400,000 50% Opening Inventory $40,000 Closing Inventory $60,000 a. 365 Days b. 4 Days c. 91 Days d. 50 Days