Chapter 6, Problem 6.4DIE

(a)

To determine

Inventory: It refers to the total stock of such goods or items which are held by the business organizations with the purpose of sale.

Inventory turnover: It refers to that number of times or rate at which inventory of the firm is purchased and sold during a particular time period.

Days in inventory: It refers to that number of days for which the inventory remains with the company before it is sold.

To determine: The amount of total inventory on the basis of lower-of-cost or market valuation.

(b)

To determine

The inventory turnover and days in inventory for 2016 and 2017.