Lewis Incorporated and Clark Enterprises report the following amounts for the year.Inventory (beginning)Inventory (ending)PurchasesPurchase returnsRequired:Lewis$25,000Clark$51,00019,00061,000276,200244,60016,00061,0001. Calculate cost of goods sold for each company.2. Calculate the inventory turnover ratio for each company.3. Calculate the average days in inventory for each company.4. Which company appears to be managing its inventory more efficiently?Complete this question by entering your answers in the tabs below.Required 1Required 2 Required 3Required 4Calculate cost of goods sold for each company.Beginning inventoryCost of goods available for saleCost of goods soldLewisClark

1: Lewis:Cost of goods sold: $266,200 Clark:Cost of goods sold: $173,600 2: Lewis: Inventory…

Answered: Lewis Incorporated and Clark…

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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Selected financial information for Zachary Company for Year 4 follows: Sales Cost of goods sold Merchandise inventory Beginning of year End of year $2,050,000 1,435,000 Merchandise inventory turnover 157,000 196,000 Required Assuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn over during Year 4? (Round your answer to 2 decimal places.) times
1. Find the inventory turnover at retail of Walker Manufacturing. The starting inventory at retail was $630,300 and the ending inventory at retail was $417,600. Sales for the year totaled $2,388,870. Round your answer to the nearest tenth. _____ 2. The cost of goods sold for Veltron International last year amounted to $534,600, and the average inventory at cost was $213,840. The published inventory turnover at cost is 6.6. Calculate the inventory turnover at cost, and if it is less than the published rate, calculate the target average inventory at cost (in $). (If the actual turnover is greater than the published rate, enter "above" for target average inventory.) Inventory turnover at cost _____ Target average inventory at cost$ ____
A company reports the following: Cost of goods sold $3,960,250 Average inventory 255,500 Round your answers to one decimal place. a. Determine the inventory turnover. Assume a 365-day year.fill in the blank 1 b. Determine the number of days' sales in inventory. Assume a 365-day year.fill in the blank 2
Laker Company reported the following January purchases and sales data for its only product. The Company uses a perpetual inventory system. Required: 2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average. Date Activities Units Acquired at Cost Units Cost per unit Total cost Units Units Sold at Retail Selling price per Total Sales January 01 Beginning inventory 205 $13.00 $2,665.00 January 10 January 20 January 25 Sales Purchase Sales 165 $22 $3,630.00 140 $12.00 $1,680.00 145 $22 $3,190.00 January 30 310 $11.50 655 Purchase Totals Notice that cost of goods sold, $3,917.22, plus ending inventory, $3,992.78, equals cost of goods available for sale, $7,910.00. Weighted Average Cost of Goods Sold $3,565.00 $7,910.00 310 $6,820.00 Inventory Balance Units Date Activities Cost per unit Cost of goods sold Units Cost per Total Cost January 01 Beginning inventory 205 unit $13.00 $2,665.00 January 10 Sales 165 $13.000 $2,145.00 40 $13.00 $520.00…
A company reports the following: Cost of goods sold $442,380 Average inventory 73,730 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
Given below is information about beginning inventory and purchases for the current year for Peterson Company. January 2 beginning inventory 500 units at $3.00 April 2 purchased 1100 units at $3.20 June 30 purchased 400 units at $4.00 December 7 purchased 1600 units at $4.40 Sales during the year were 2700 units at $5.00. If Peterson used the weighted-average (periodic) method, what is gross profit?
Selected financial information for Zachary Company for Year 4 follows: Sales Cost of goods sold Merchandise inventory Beginning of year End of year $1,600,000 1,120,000 Merchandise inventory turnover 151,000 199,000 Required Assuming that the merchandise inventory buildup was relatively constant, how many times did the merchandise inventory turn over during Year 4? (Round your answer to 2 decimal places.) times
Find the inventory turnover at retail of Walker Manufacturing. The starting inventory at retail was $634,300 and the ending inventory at retail was $423,600. Sales for the year totaled $2,388,870. Round your answer to the nearest tenth
Based on the following information compute (a) inventory turnover, (b) average daily cost of merchandise sold, and (c) days' sales in inventory for the current year. Use a 365-day year. Item Prior Year Current Year Cost of merchandise sold $172,900 $215,000 Inventory 18,000 12,000 If required, round your answers to two decimal places. (a) Inventory turnover times (b) Average daily cost of merchandise sold $ (c) Days' sales in inventory days (d) If an inventory turnover of 12 is average for the industry, how is this company doing?
Present with Formulas
Consider the following information for Maynor Company, which uses a periodic inventory system: Transaction Beginning Inventory Unit Cost Total Cost $ 80 $ 2,400 Purchase 86 3,440 Purchase 90 Purchase 96 January 1 March 28 August 22 October 14 Goods Available for Sale Units 30 40 60 65 195 a. FIFO b. LIFO c. Weighted Average 5,400 6,240 $ 17,480 The company sold 65 units on May 1 and 60 units on October 28. Required: Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods.
The following units of a particular item were available for sale during the calendar year: Jan. 1 3,800 units at $40 Apr. 19 2,600 units June 30 4,400 units at $45 Sept. 2 5,200 units Nov. 15 2,100 units at $48 The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column. Date Jan. 1 Apr. 19 June 30 Sept. 2 Nov. 15 Dec. 31 Inventory Sale Purchase Sale Purchase Quantity Balances Purchases Unit Cost Total Cost Schedule of Cost of Goods Sold FIFO Method Quantity Cost of Goods Sold Unit Cost Total Cost Quantity Inventory Unit Cost $ Total Cost

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