Provide correct answer general Accounting question Calculate the Inventory Days on hand, assuming:SalesGross Margin$600,00040%Opening Inventory $75,000Closing Inventory $85,000

To calculate Inventory Days on Hand, follow these steps:Step 1: Understand the FormulaInventory Days…

Answered: Calculate the Inventory Days on hand,…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

See similar textbooks

Similar questions

Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
Calculate the inventory days on hand, assuming:
Use the following information: Net sales Cost of goods sold $235,000 168,000 52,000 42,000 Beginning inventory Ending inventory a. Calculate the inventory turnover ratio. b. Calculate the average days in inventory. c. Calculate the gross profit ratio.
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
cost account
Blue Company has the following data for the year. Beginning inventory Net sales revenue $100,000 Net purchases $320,000 Normal gross profit rate $140,000 40% What is the estimated ending inventory? (Round your final answer to the nearest dollar.) O A. $240,000 O B. $192,000 O C. $112,000 O D. $48,000
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
A retailer’s total sales are $1,000,000 and the gross margin percentage is 60%. Thebeginning and ending inventory balances are $240,000 and $260,000, respectively.What is the inventory turnover?a. 1.60b. 2.40c. 3.40d. 3.60
If the estimated rate of gross profit is 30%, what is the estimated cost of the inventory on September 30, based on the following data? Sep. 1 Inventory (at cost) $125,000 Sep. 1-30 Purchases, net (at cost) 300,000 Sep. 1-30 Sales 150,000 Oa. $105,000 Ob. $275,000 Oc, $320.000 Od. $192,500
Use the following information: Net sales $ 205,000 Cost of goods sold 144,000 Beginning inventory 46,000 Ending inventory 36,000 a. Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.) b. Calculate the average days in inventory. (Assume 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) c. Calculate the gross profit ratio. (Round your answer to 2 decimal place.)
Estimating Inventory Using Gross Profit Method The following data is from Netflicks Company for 2020. Sales revenue $360,000 Beginning inventory 48,000 Purchases 240,000 For each separate case a through e, estimate ending inventory. a. Markup is 50% on cost. Answer b. Markup is 60% on sales. Answer c. Markup is 25% on cost. Answer d. Markup is 40% on sales. Answer e. Markup is 60% on cost. Answer

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS

Calculate the Inventory Days on hand, assuming: Sales Gross Margin $600,000 40% Opening Inventory $75,000 Closing Inventory $85,000