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A company had the following purchases during the current year: January: 50 units

ID: 2641913 • Letter: A

Question

A company had the following purchases during the current year:

  

  January:

  50 units at $130

  February:

  60 units at $140

  May:

  55 units at $150

  September:

  52 units at $160

  November:

  50 units at $170


On December 31, there were 126 units remaining in ending inventory. These 126 units consisted of 22 from January, 24 from February, 26 from May, 24 from September and 30 from November. Using the specific identification method, what is the cost of the ending inventory?

$17,640

$18,760

$19,060

$20,160

$18,900

Toys "R" Us had cost of goods sold of $22,021 million, ending inventory of $3,489 million, and average inventory of $2,665 million. The inventory turnover equals:

.12

8.26

57.84 days

44.19 days

6.31

A company has inventory of 28 units at a cost of $18 each on August 1. On August 5, they purchased 23 units at $13 per unit. On August 12, they purchased 33 units at $40 per unit. On August 15, they sold 56 units. Using the FIFO perpetual inventory method, what is the value of the inventory on August 15 after the sale?

rev: 02_25_2014_QC_45964

$1,792

$1,120

$920

$868

$536

A company had the following purchases during the current year:

Explanation / Answer

1) Inventory = =22*130+24*140+26*150+24*160+30*170 = 19060

2) Inventory turnover = 22021 / 2665 = 8.26

3) Units in ending inventory = 28 + 23+ 33 - 56 = 28 units

Inventory value = 28*40 = 1120

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