A small-appliance merchant using the FIFO method of valuing inventory has 60 toa
ID: 2772476 • Letter: A
Question
A small-appliance merchant using the FIFO method of valuing inventory has 60 toasters remaining in inventory. The merchant purchased toasters over a three month-period as follows: 30 purchased at $7.80 on April 1, 50 purchased at $7.70 on May 1, and 20 purchased at $7.80 on June 1. Compute the value of the ending inventory of toasters at FIFO cost. $______
Readers' Bookstore takes inventory annually and bases inventory on selling price. Beginning inventory for the year was $44,150. Ending inventory for the year was $39,350. Net sales for the year equal $75,150.
Compute the inventory turnover at retail. Round your answer to one decimal place.
$_______
The comparative income statement of Lawn Products, Inc. showed sales of $325,000 in 2004 and $494,450 in 2005.
Compute the percentage of net change in sales. (Round answer to one decimal place.)
______%
Explanation / Answer
Answer: Calculation of the value of ending inventory of toasters at FIFO cost. $______
=40*7.70=308
=20*7.80=156
Total=$464
Answer: Inventory turnover ratioNet sales/Average inventory
=$75150/[(44150+39350)/2]
=$75150/$41750
=1.8 times
Answer: Calculation of net change in sales:
Net change in sales=($169450/$325000)*100
=52.14%
Particulars 2004 2005 Change Sales 325000 494450 169450Related Questions
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