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Business Accounting FINANCIAL AND MANAGERIAL ACCOUNTING

(a) To determine: The inventory turnover for the year ended on September 28, 2019. Introduction: Inventories are the items or products held by the company to be utilized in operating activities. It can be in the form of raw material, work-in-process, and finished goods. The inventory turnover for the year ended on September 28, 2019, is 1.88%. Inventory turnover for the year ended on September 28, 2019, is calculated as follows- Particulars Amount Beginning inventory (A) $3,956 million Ending inventory (B) $4,106 million Average inventory C = A + B 2 $4,031 million Net Sales (D) $213,883 million Inventory turnover C D 1.88% Table (1) Thus, the inventory turnover is 1.88%. (b) To determine: The days ‘sales in inventory for the year ended on September 28, 2019. Introduction: Inventories are the items or products held by the company to be utilized in operating activities. Days’ sales in inventory determine the number of days or months required to convert the inventory into sales. The days ‘sales in inventory for the year ended on September 28, 2019, is 10.34 days. Inventory turnover for the year ended on September 28, 2019, is calculated as follows- Particulars Amount Inventories (A) $4,106 million Cost of goods sold (B) $144,996 million Days ‘sales in inventory A B × 365 10.34 days Table (1) Thus, the days ‘sales in inventory are 10.34 days.

(a) To determine: The inventory turnover for the year ended on September 28, 2019. Introduction: Inventories are the items or products held by the company to be utilized in operating activities. It can be in the form of raw material, work-in-process, and finished goods. The inventory turnover for the year ended on September 28, 2019, is 1.88%. Inventory turnover for the year ended on September 28, 2019, is calculated as follows- Particulars Amount Beginning inventory (A) $3,956 million Ending inventory (B) $4,106 million Average inventory C = A + B 2 $4,031 million Net Sales (D) $213,883 million Inventory turnover C D 1.88% Table (1) Thus, the inventory turnover is 1.88%. (b) To determine: The days ‘sales in inventory for the year ended on September 28, 2019. Introduction: Inventories are the items or products held by the company to be utilized in operating activities. Days’ sales in inventory determine the number of days or months required to convert the inventory into sales. The days ‘sales in inventory for the year ended on September 28, 2019, is 10.34 days. Inventory turnover for the year ended on September 28, 2019, is calculated as follows- Particulars Amount Inventories (A) $4,106 million Cost of goods sold (B) $144,996 million Days ‘sales in inventory A B × 365 10.34 days Table (1) Thus, the days ‘sales in inventory are 10.34 days.

FINANCIAL AND MANAGERIAL ACCOUNTING

FINANCIAL AND MANAGERIAL ACCOUNTING

9th Edition

ISBN: 9781265337520

Author: Wild

Publisher: MCG

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Chapter 5, Problem 1.3AA

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Chapter 5 Solutions

FINANCIAL AND MANAGERIAL ACCOUNTING

Ch. 5 - Prob. 1QS Ch. 5 - Prob. 2QS Ch. 5 - Prob. 3QS Ch. 5 - Prob. 4QS Ch. 5 - Perpetual: Inventory costing with FIFO P1 A...Ch. 5 - Prob. 6QS Ch. 5 - Prob. 7QS Ch. 5 - Prob. 8QS Ch. 5 - Prob. 9QS Ch. 5 - A Periodic: Inventory costing with weighted...

Ch. 5 - Prob. 11QS Ch. 5 - Prob. 12QS Ch. 5 - Perpetual: Inventory costing with weighted average...Ch. 5 - Prob. 14QS Ch. 5 - Prob. 15QS Ch. 5 - Prob. 16QS Ch. 5 - Prob. 17QS Ch. 5 - Prob. 18QS Ch. 5 - Prob. 19QS Ch. 5 - Prob. 20QS Ch. 5 - Prob. 21QS Ch. 5 - Prob. 22QS Ch. 5 - Prob. 23QS Ch. 5 - Prob. 24QS Ch. 5 - Prob. 25QS Ch. 5 - Prob. 26QS Ch. 5 - Prob. 1E Ch. 5 - Prob. 2E Ch. 5 - Exercise 5-3 Perpetual: Inventory costing methods...Ch. 5 - Prob. 4E Ch. 5 - Prob. 5E Ch. 5 - Prob. 6E Ch. 5 - Prob. 7E Ch. 5 - Prob. 8E Ch. 5 - Prob. 9E Ch. 5 - Prob. 10E Ch. 5 - Prob. 11E Ch. 5 - Prob. 12E Ch. 5 - Prob. 13E Ch. 5 - Prob. 14E Ch. 5 - Prob. 15E Ch. 5 - Prob. 16E Ch. 5 - Prob. 17E Ch. 5 - Prob. 18E Ch. 5 - Prob. 19E Ch. 5 - Prob. 20E Ch. 5 - Prob. 21E Ch. 5 - Prob. 1PSA Ch. 5 - Prob. 2PSA Ch. 5 - Prob. 3PSA Ch. 5 - Problem 5-4AA Periodic: Alternative cost flows...Ch. 5 - Prob. 5PSA Ch. 5 - Prob. 6PSA Ch. 5 - Prob. 7PSA Ch. 5 - Prob. 8PSA Ch. 5 - Prob. 9PSA Ch. 5 - Prob. 10PSA Ch. 5 - Prob. 1PSB Ch. 5 - Prob. 2PSB Ch. 5 - Prob. 3PSB Ch. 5 - Prob. 4PSB Ch. 5 - Prob. 5PSB Ch. 5 - Prob. 6PSB Ch. 5 - Prob. 7PSB Ch. 5 - Problem 5-8BA Periodic: Income comparisons and...Ch. 5 - Prob. 9PSB Ch. 5 - Prob. 10PSB Ch. 5 - Prob. 5SP Ch. 5 - Prob. 1.1AA Ch. 5 - Prob. 1.2AA Ch. 5 - Prob. 1.3AA Ch. 5 - Prob. 1.4AA Ch. 5 - Prob. 2.1AA Ch. 5 - Prob. 2.2AA Ch. 5 - Prob. 2.3AA Ch. 5 - Prob. 3.1AA Ch. 5 - Prob. 3.2AA Ch. 5 - Prob. 3.3AA Ch. 5 - Describe how costs flow inventory to cost of goods...Ch. 5 - Where is the amount of merchandise inventory...Ch. 5 - Prob. 3DQ Ch. 5 - Prob. 4DQ Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - What factors contribute to (or cause) inventory...Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 1BTN Ch. 5 - Prob. 2BTN Ch. 5 - Prob. 3BTN Ch. 5 - Prob. 5BTN

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