Compute the inventory turnover from the following information: Cost of goods sold $643,825...
Question:
Compute the inventory turnover from the following information:
| Cost of goods sold | $643,825 |
| Beginning inventory | $87,750 |
| Ending inventory | $97,400 |
| Goods available for sale | $750,000 |
A company had the following ending inventory costs:
| Product | Units on Hand | Units Cost | Market Value |
|---|---|---|---|
| A | 10 | $5 | $6 |
| B | 50 | $8 | $7 |
| c | 35 | $10 | $11 |
Instructions:
a) Calculate the lover of cost or market (LCM) value for the inventory as a whole.
b) Calculate the lover of cost or market (LCM) value for each individual item.
Inventory:
The inventory is the goods owned by the company at the end of a period. It is recorded as a current asset in the balance sheet. An inventory includes but not limited to raw materials, finished goods inventory and merchandise inventory.
Answer and Explanation: 1
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View this answerInventory turnover:
The average inventory can be computes as follows:
- Average inventory = (Beginning inventory + Ending inventory) / 2
- Average...
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