Financial statement data at December 31 for Ecco Company are as follows: Cost of goods sold $620,500 Inventories: Beginning of year 230,000 End of year 130,000 Determine the days' sales in inventory for the year. a. 135.3 days b. 76.5 days O c. 105.9 days d. 58.8 days

Financial statement data at December 31 for Ecco Company are as follows: Cost of goods sold $620,500 Inventories: Beginning of year 230,000 End of year 130,000 Determine the days' sales in inventory for the year. a. 135.3 days b. 76.5 days O c. 105.9 days d. 58.8 days

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Required information Exercise 8-9A (Algo) Computing and recording straight-line versus…

A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…

Q: Sales Raw materials inventory, beginning Work in process inventory, beginning Finished goods…

A: The total cost of goods made is the overall cost of manufacturing a thing.Direct materials, direct…

Q: aum Corporation uses the weighted-average department for the most recent month are listed below:…

A: Process costing is used to record cost of various stages of production. Where finished goods of one…

Q: Metlock Inc. had beginning inventory of $12,400 at cost and $21,700 at retail. Net purchases were…

A: Conventional retail method used by retailers that resell merchandise to estimate their ending…

Q: Required information [The following information applies to the questions displayed below.] Golden…

A: Cash flow statement :— It is one of the financial statement that shows change in cash and cash…

Q: The first production department of Stone Incorporated reports the following for April. Direct…

A: Equivalent units refer to quantity of incomplete units manufactured by the company that is expressed…

Q: a. Prepare a cash receipts schedule for November and December. Prince Charles Island Company Cash…

A: a.Prince Charles Island companyCash receipts…

Q: Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016…

A: Cost of goods sold = Cost of goods manufactured + Beginning finished goods - Ending finished goods

Q: A manufacturer reports the following information below for its first three years in operation. Year…

A: Absorption costing method is a method of costing in which product cost is calculated by adding…

Q: Requireu mmonation [The following information applies to the questions displayed below.) The…

A: The income statement is prepared at the end of the period to calculate the net income or loss earned…

Q: Mojo Industries tracks the number of units purchased and sold throughout each accounting period but…

A: Inventory Valuation Methd includes:FIFO MethodLIFO MethodWeighted average cost methodFIFO Method- As…

Q: Exercise 24-04 As loan analyst for Bramble Bank, you have been presented the following information.…

A: As posted multiple sub parts we are answering only the first three sub parts Kindly repost the…

Q: Hip Manufacturing produces denim clothing. This year it produced 3,380 denim jackets at a cost of…

A: The net income is calculated as difference between revenue and expenses.The alternative which…

Q: The following are summary cash transactions that occurred during the year for Hilliard Healthcare…

A: Cash flow from investing activity includes transactions like the purchase and sale of long-term…

Q: Pauley Company needs to determine a markup for a new product-Pauley expects to sell 15,000 units and…

A: Variable cost :— It is the cost that changes with change in activity of cost driver. Variable cost…

Q: Zachary Company's cost and production data for two recent months included the following: April 700…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…

Q: Matt Company uses activity-based costing. The company has two products: A and B. The annual…

A: Activity based costing means where the product is valued on the basis of actual direct material,…

Q: Exercise 5-7 (Algo) Contribution margin LO A1 A jeans maker is designing a new line of jeans called…

A: product's revenue and its variable costs. In other words, it is the amount of money that is…

Q: Cost Formula Utilities $20,600+ $0.10 per nachine-hour Maintenance $40,000+ $1.60 per machine-hour…

A: Variance arises when the actual costs differ from the standard costs. The results are favorable…

Q: The following account balances were taken from the adjusted trial balance for Show Messenger…

A: Income statement is the one which is prepared by the entity for the purpose of depicting the…

Q: Assume a company is considering buying 10,000 units of a component part rather than making them. A…

A: In the following table, we have presented the comparison between make or buy the component.…

Q: Sheridan Company purchased equipment on March 31, 2021, at a cost of $280,000. Management is…

A: Depreciation expense:— It is the allocation of depreciable cost of an asset over the estimated…

Q: sheet LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Bergo…

A: Income statement is the financial statement that records all the income and expenses of the business…

Q: Calculate the gross profit/ (loss) that should be recognized for 2023, 2024, and 2025 using the…

A: Given in the question 2023 2024 2025 Costs incurred to date $920,625…

Q: 0. D.

A: The direct method for allocation of service department cost , allocates cost between the production…

Q: k ces The worksheet of Bridget's Office Supplies contains the following revenue, cost, and expense…

A: Income statement is one of financial statement being prepared in business. It shows all revenues and…

Q: Tanek Corp's sales slumped badly in 2017. For the first time in its history, it operated at a loss.…

A: W.note 1 Sales $2,702,500.00 given Variable $1,945,800.00 given Fixed Expenses…

Q: Required information [The following information applies to the questions displayed below] Carlberg…

A: The equivalent units are calculated on the basis of percentage of the work completed during the…

Q: 5. Refer to the original data. By automating, the company could slash its variable expenses in half.…

A: Contribution Margin: It is the difference between the sales and the Variable Cost of the…

Q: Product Pricing and Profit Analysis with Bottleneck Operations Hercules Steel Company produces three…

A: The contribution margin is calculated as difference between sales and variable costs. The net…

Q: Webb, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable…

A: The flexible Budget report is used for comparing actual cost and flexible Budget cost. After…

Q: 3. Prepare an adjusted trial balance as of December 31, 2024, after updating account balances for…

A: A firm's accounts, their helps balance, and any adjusting entries made at the end of an accounting…

Q: 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement…

A: The variable costing income statement is a financial statement which shows the total variable cost…

Q: Brief Exercise 15-5 (Algo) Determining flexible budget variances LO 15-5 Mustang Manufacturing…

A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…

Q: Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company's accounting…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: Pureform, Incorporated, uses the FIFO method in its process costing system. It manufactures a…

A: Equivalent Unit:The equivalent unit concept is defined as the number of units that will be produced…

Q: Problem 18-2A (Static) Contribution margin income statement and contribution margin ratio LO A1 The…

A: Lets understand the basics.VARIABLE COST Variable Cost is a cost that varies with the level of…

Q: Warner Company's year-end unadjusted trial balance shows accounts receivable of $106,000, allowance…

A: Accounts uncollectible are receivables, loans, or other debts that have almost no chance of being…

Q: Drake Manufacturing has the following budgeted data for its two production departments. Assembly…

A: Single plant wide overhead rate is a single rate determined to allocate overhead. It is also known…

Q: Norwood Stationary has provided the following information (in thousands of dollars) for October.…

A: The cost of goods sold includes the cost of goods that are sold during the period. The net income is…

Q: Portions of the financial statements for Clear Transmissions Company are provided below: CLEAR…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Cotton Corp. currently makes 8,700 subcomponents a year in one of its factories. The unit costs to…

A: To calculate the change in income, only the Relevant costs like direct materials, direct labor and…

Q: Before the year began, Coia Manufacturing estimated that manufacturing overhead for the year would…

A: OVERAPPLIED OVERHEADOverapplied Overhead occurs when Company's Budgeted Overhead is more than actual…

Q: The accounting records of NuTronics, Inc., include the following information for the year ended…

A: Cost of goods manufactured :— It is the total cost of goods transferred from work in process…

Q: At December 31, 2021, Cullumber Company reported this information on its balance sheet. Accounts…

A: Answer:- Accounts receivable:- Th proceeds or money that the business will receive from its clients…

Q: Budgeted Income Statement Pendleton Company, a merchandising company, is developing its master…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Brief Exercise 5-12 Riverbed Beverage Company reported the following items in the most recent year.…

A: Cash flow statement is the financial statement that records all the cash inflow and cash outflow…

Q: ish Brothers Corporation has the following ndirect factory labor Direct materials used $4,300…

A: Cost Of Goods Manufactured - It Is The Total Cost Of Completed Finished Goods Transferred From Work…

Q: Xaric Industries operates two support departments, Personnel and Accounting, and two producing…

A: Methods of cost allocationThere are various methods of allocating the cost of the service divisions…

Q: EXERCISE 7-10 Sales and Production Budgets [LO2, LO3] The marketing department of Graber Corporation…

A: Cash budget means the statement which shows the expected cash available for distribution including…

Question

Please do not give solution in image format thanku

Financial statement data at December 31 for Ecco Company are as follows:
Cost of goods sold
$620,500
Inventories:
Beginning of year
230,000
End of year
130,000
Determine the days' sales in inventory for the year.
a. 135.3 days
b. 76.5 days
c. 105.9 days
O d. 58.8 days

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Ratio analysis

VIEW

Step 2: Calculation of day sales in inventory

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.