Note 3 to the 2013 financial statements of Willamette Valley Vineyards reports that Inventoriesconsist of the following:20132012Winemaking and packagingmaterials$ 732,909$ 454,612Work-in-processFinished goods4,099,2245,001,1793,891,7544,880,518Total inventories$9,833,312$9,226,884The company reported cost of goods sold of $5,588,439 in 2013 and $5,253,336 in 2012. Computeaverage inventory days outstanding for both years. What does this ratio mean? Interpret the ratios.

Note 3 to the 2013 financial statements of Willamette Valley Vineyards reports that Inventories consist of the following: 2013 2012 Winemaking and packaging materials $ 732,909 $ 454,612 Work-in-process Finished goods 4,099,224 5,001,179 3,891,754 4,880,518 $9,226,884 Total inventories $9,833,312 The company reported cost of goods sold of $5,588,439 in 2013 and $5,253,336 in 2012. Compute average inventory days outstanding for both years. What does this ratio mean? Interpret the ratios.

Note 3 to the 2013 financial statements of Willamette Valley Vineyards reports that Inventories consist of the following: 2013 2012 Winemaking and packaging materials $ 732,909 $ 454,612 Work-in-process Finished goods 4,099,224 5,001,179 3,891,754 4,880,518 $9,226,884 Total inventories $9,833,312 The company reported cost of goods sold of $5,588,439 in 2013 and $5,253,336 in 2012. Compute average inventory days outstanding for both years. What does this ratio mean? Interpret the ratios.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Note 3 to the 2013 financial statements of Willamette Valley Vineyards reports that Inventories
consist of the following:
2013
2012
Winemaking and packaging
materials
$ 732,909
$ 454,612
Work-in-process
Finished goods
4,099,224
5,001,179
3,891,754
4,880,518
Total inventories
$9,833,312
$9,226,884
The company reported cost of goods sold of $5,588,439 in 2013 and $5,253,336 in 2012. Compute
average inventory days outstanding for both years. What does this ratio mean? Interpret the ratios.

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The year-end financial statement of Wando's Vineyards reported Net revenues of $19,425,412 and Cost of goods sold of $7,204,884 in year 2. Note 3 to the financial statements reported that Inventories consisted of: Year 2 Year 1 Winemaking and packaging materials $899,620 $759,321 Work-in-process 7,297,415 6,664,571 Finished goods 4,970,687 4,271,816 Total inventories $13,167,722 $11,695,708 The inventory turnover for Year 2 was: Select one: a. 0.62 b. 0.55 c. 0.58 d. None of these are correct. e. 1.56

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