The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute inventory turnover for each company. (Round answers to 2 decimal places, e.g. 15.25.) Novak CompanyFlounder CompanBeginning inventory$ 45,000$71,000Cost of goods purchased199,000295,500Cost of goods available for sale244,000366,500Ending inventory55,50071,500Cost of goods sold$188,500$295,000

The question is based on the cost accounting.

Answered: The cost of goods sold computations for…

The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute inventory turnover for each company. (Round answers to 2 decimal places, e.g. 15.25.)

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: Using the weighted average method, complete the steps below to calculate the ending inventory units,…

A: Cost of Goods Sold (COGS) is a fundamental accounting metric that represents the direct costs…

Q: stion by entering ed 2 Required 3 s sold under the FIFO, LIFO, and average cost inventory costing…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: Cruz Company uses LIFO for inventory costing and reports the following financial data. It also…

A: Days sales in inventory is calculated by dividing number of days in a year by inventory turnover.…

Q: Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Examining the recent financial statements of McLelland Clothing, Inc., you note the following:…

A: Ratio Analysis Is a Method Of Analysis Of The Company's Liquidity, Profitability By Comparing The…

Q: Novak Corp. Inc. had a beginning inventory of 100 units of Product RST at a cost of $9 per unit.…

A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…

Q: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,…

A: The perpetual inventory system is one of the methods of inventory management that records real-time…

Q: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,…

A: As per LIFO method Units sold are valued at cost of units which have been purchased recently,…

Q: Number of Units Unit Cost Sales Beginning Inventory 250 $100 Sold 160 $140 Purchased 510 103 Sold…

A: under FIFO method ,inventory cogs recognized on the basis of first remaining purchase unit in stock.

Q: Calculate the average inventory (in $) and inventory turnover ratio for the given company. (Round…

A: The inventory turnover ratio is the financial ratio formula which is used to determine the number of…

Q: s

A: Inventory Valuation is a method of calculating the value of stock at the end of an accounting…

Q: Days in inventory is found by Group of answer choices dividing inventory by cost of goods sold per…

A: The day in inventory is a financial ratio that indicates the average time in days that a company…

Q: Calculate the cost of goods sold dollar value for A65 Company for the month, considering the…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: Warner Co. is a manufacturer of wagons. How much will the company report as cost of goods sold on…

A: The cost of goods sold is the cost incurred to sell the goods to the customer. It includes the cost…

Q: Cruz Company uses LIFO for inventory costing and reports the following financial data. It also…

A: Current Ratio:Current Ratio is a liquidity ratio that measures a company’s ability to pay short-term…

Q: Cruz Company uses LIFO Tor inventory costing and reports trhe folOwing iinanIcial dala. Il aiso…

A: Inventory is a very important current asset that is being reported in the business. Inventory…

Q: The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute…

A: Days in Inventory = 365 x Average Inventory / Cost of Goods Sold Average Inventory = (Beginning…

Q: alculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,…

A: LIFO Method is a method used for valuing Inventory and Cost of Goods sold. The LIFO method assumes…

Q: Following is partial information for the income statement of Audio Solutions Company under three…

A: Small firms need to use effective inventory costing in order to make wise financial decisions. One…

Q: 2) Compute days in inventory for each company. (Round answers to O decimal plac Wildhorse Company…

A: Inventory turnover is the average number of times a company sells and replaces its inventory in a…

Q: Calculate Blossom Company's cost of goods sold, gross margin, and ending inventory using…

A: The inventory can be valued using various methods as FIFO, LIFO and average method. Using FIFO…

Q: The kind of business is food industry services. This ratio comes out when I total the FG Turnover…

A: Turnover ratio is calculated by dividing cost of good sold by average inventory for particular…

Q: The following data are available for Sellco for the fiscal year ended on January 31, 2023: Sales…

A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…

Q: Following is partial information for the income statement of Arturo Technologies Company under three…

A: Cost of goods sold means the amount incurred on the making of the goods sold by the entity in the…

Q: Inventory Costing Methods-Perpetual Method Using the data below, assume that Portet Corporation uses…

A: The various methods for inventory valuation are FIFO, LIFO and weighted average method. FIFO stands…

Q: Presented below is information related to Indigo Company. (a) Compute the ending inventory at…

A: Ending inventory is the amount of inventory that an entity has in hand at the end of the period. It…

Q: Compute cost of goods sold using the following information: Finished goods inventory,…

A: Cost of goods sold is the value of the goods sold by the company by adding beginning Finished goods…

Q: Using the accounts and amounts below, calculate Cost of Goods Sold: Account Amount Beginning…

A: Cost of goods sold = Beginning inventory + cost of goods purchased - ending inventory

Q: Company Z had the following information: inventory at cost of $5,100, selling value of inventory of…

A: Businesses need to analyze costs in order to determine profitability, establish prices, decide what…

Q: 2. Below is the Statement of Cost of Goods Manufactured and the Income Statement for two separate…

A: Statement of net income is an essential part of financial statements. These statements t are…

Q: Joseph & Jordan, a consulting firm, specializes in providing internal audit services for its…

A: Cost of sales: The entire expense incurred to manufacture or produce the good or service is called…

Q: At John's company, two types of candles are created from the common melting and molding process:…

A: Lets understand the basics.Joint costs are the shared production expenses incurred when several…

Q: the information of the firm using the average cost method is as follows: Quantity unit price 200 10…

A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: Requirements: Complete the Ending Inventory and Cost of Goods Sold schedules for each inventory…

A: Cost of goods Sold The cost of the inventory that a business sells within a given time period is…

Q: Problem 13-5A (Algo) Comparative ratio analysis LO P3 [The following information applies to the…

A: Step 1: Inventory Turnover can be calculated by dividing the Cost of Goods Sold by the Average…

Q: How is this ratio calculated? What does the ratio show? Using the data below (Sunn Corporation) ,…

A: The inventory turnover ratio expresses the relationship between the average cost of goods sold…

Q: Consider the following transactions for DeTrees Company for the month shown in chronological order:…

A: The weighted average cost per unit is calculated as total cost divided by no. Of units.

Q: The cost of goods for sale of Ram Products Inc. was P7, 645,000 and the ending inventory amounts to…

A: Cost of goods sold is estimated by subtracting ending inventory from cost of goods available from…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Inventory management is very important for organizations. It helps eliminate cash trapping in…

Q: Using the above data, calculate operating income for each company. (Enter amounts in millions as…

A: Operating income means income from operation it includes a firm's gross revenue or all sales revenue…

Q: On the basis of the following data, what is the value of the total inventory at the lower of cost or…

A: Calculation of Value Of Total Inventory Item Product C Product D Total Inventory Qty…

Q: Cruz Company uses LIFO for inventory costing and reports the following financial data. It also…

A: Days sales in inventory is calculated by dividing number of days in a year by inventory turnover.…

Question

The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute inventory turnover for each company. (Round answers to 2 decimal places, e.g. 15.25.)

Novak Company
Flounder Compan
Beginning inventory
$ 45,000
$71,000
Cost of goods purchased
199,000
295,500
Cost of goods available for sale
244,000
366,500
Ending inventory
55,500
71,500
Cost of goods sold
$188,500
$295,000

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 Introduction

VIEW

Step 2 Calculating the required part

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes. Year 2 $ 320 900 390 855 LIFO inventory LIFO cost of goods sold FIFO inventory FIFO cost of goods sold Current assets (using LIFO) Current assets (using FIFO) Current liabilities 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. Current ratio Inventory turnover Days' sales in inventory Year 1 $ 270 840 380 450 180 Current ratio Inventory turnover Days' sales in inventory (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Numerator / Denominator 295 840 350 375 160 Numerator / Denominator (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Ratio 0 0 0 Ratio 0 0 0
The inventory of LA VIDA Company at the end of the year is to be recorded at the lower of cost and net realizable value . Ending inventory data per unit are as follow: Item Unit Cost Est. Sales Price Cost of Disposal A 200 150 200 20 B 130 220 300 100 C 150 120 180 30 D 300 180 150 30 Determine the inventory value applying the lower of cost and net realizable value.
A business using the retail method of inventory costing determines that merchandise inventory at retail is $565,900. If the ratio of cost to retail price is 67%, what is the amount of inventory to be reported on the financial statements?
Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific data for each product are as follows: 1. what is the correct inventory value assuming the LCNRV rule is applied to each item of inventory? 2. What is the correct inventory value assuming the LCNRV rule is applied to the total of inventory? 3. Next Level Comment on any differences that result from applying the LCNRV rule to individual items coinpared to the total of inventory.
Cont of pictures: Calculate gross profit rate under each of the following methods 1. LIFO 2. FIFO 3. Average-cost (Round answers to 1 decimal place, e.g. 51.2%)
None
How is average selling period computed ?a) It is equal to Cost of the goods sold / 365 b) It is equal to 365 / Net salesc) It is equal to 365 / finished goods inventory turnoverd) It is equal to 365 / Cost of the goods sold
Determine the unit value that should be used for inventory costing following "lower-of-cost-or-market value". (Round answers to 2 decimal places, e.g. 52.75.) A B C D E F Cost $2.80 $2.44 $2.80 $2.62 $2.44 $2.44 Replacement cost 2.25 3.00 2.25 2.60 2.37 2.46 Net realizable value 2.95 2.95 2.95 2.41 2.50 2.50 Net realizable value less normal profit 2.70 2.75 2.85 2.25 2.30 2.30 Case A $ Case B $ Case C $ Case D Case E $ Case F $
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO). Numberof Units Unit Cost Sales Beginning Inventory 260 $140 Sold 160 $180 Purchased 510 143 Sold 400 182 Purchased 420 150 Sold 370 184 Ending Inventory 260 FIFO (perpetual) Inventory Cost of Goods Purchased Cost of Goods Sold Cost of Inventory Remaining Numberof Units Unit Cost Total Cost Numberof Units Unit Cost Total Cost Numberof Units Unit Cost Total Cost Beginning fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Sale fill in the blank 4 $fill in the blank 5 $fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 Purchase fill in the blank 10 $fill in the…
Bramble Inc. had beginning inventory of $11,395 at cost and $21,500 at retail. Net purchases were $122,915 at cost and $186,600 at retail. Net markups were $9,100, net markdowns were $6,600, and sales revenue was $159,100. Compute ending inventory at cost using the LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to O decimal places, e.g. 28,987.) Ending inventory using LIFO retail method $
The following data are available for SQM - Sociedad Quimica y Minera S.A. Calculate Inventory Turnover (1 Decimal Place): Revenue 1850 Beg. Inventory 610 End Inventory 670 Credit Sales 1480 COGS 1110 1.8 2.9 1.8 2.3 1.9 O 1.7
d The records of Cordova Corp. showed the following transactions, in the order given, relating to the major inventory item: Required: Complete the following schedule for each independent assumption. (Round unit costs to the nearest cent.) a. 1. Inventory 2. Purchase 3. Sale (at $15.20) 4. Purchase 5. Sale (at $15.20) 6. Purchase 7. Sale (at $18.20) 8. Purchase Independent Assumptions FIFO Weighted average, periodic inventory system Moving average, perpetual inventory system b. Unit Units Cost 5,600 $7.00 11,200 7.30 7,900 10,200 7.60 16,800 18,800 7.76 16,800 11,200 7.90 C. $ Ending Inventory 121,848 121,675 X 121,676 Units and Amounts Cost of Goods Sold $ 311,000 311,064 311,328 $ Gross Margin 370,200 370,136 X 369,872