Compute the inventory turnover from the following information:
|Cost of goods sold||$643,825|
|Goods available for sale||$750,000|
A company had the following ending inventory costs:
|Product||Units on Hand||Units Cost||Market Value|
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.
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
The average inventory can be computes as follows:
- Average inventory = (Beginning inventory + Ending inventory) / 2
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fromChapter 13 / Lesson 7
Learn what inventory in business is. Find out three types of inventory management systems and the benefits of each. Understand inventory management through examples.