(a) Cody Company sells three different categories of tools (small, medium, and large). The cost and market...
Question:
(a) Cody Company sells three different categories of tools (small, medium, and large). The cost and market value of its inventory of tools are as follows
Determine the value of the company’s inventory under the lower-of-cost-or-market approach.
(b) Early in 2017, Yeng Company switched to a just-in-time inventory system. Its sales, cost of goods sold, and inventory amounts for 2016 and 2017 are shown below.
Determine the inventory turnover and days in inventory for 2016 and 2017. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the twoyears.
Cost Market Small Medium Large 64,000 290,000 152,000 73,000 260,000 171,000 2016 $3,120,000 1,200,000 180,000 220,000 2017 Sales Cost of goods sold Beginning inventory Ending inventory $3,713,000 1,425,000 220,000 100,000
Step by Step Answer:
a The lowest value for each inventory type is Small 64000 Med...View the full answer
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
Cody Company sells three different categories of tools (small, medium, and large). The cost and net realizable value of its inventory of tools are as follows. Determine the value of the companys...
-
Cody Company sells three different categories of tools (small, medium, and large). The cost and net realizable value of its inventory of tools are as follows. Determine the value of the companys...
-
(a) Kiele Company sells three different categories of tools (small, medium, and large). The cost and fair value of its inventory of tools are as follows. Determine the value of the company?s...
-
Perform the indicated operations and simplify the result. Leave your answer in factored form. X x - 3 x + 1 x2 + 5x 24
-
November Raincoats uses three different machines to manufacture raincoats. Due to climate change and changes in consumer preferences, demand for raincoats has declined in recent years. The following...
-
Flamingos to Go is a service company owned by Irvin Vonnet that will plant plastic flamingos on a special day in peoples yards to help celebrate and advertise birthdays, births, anniversaries, and...
-
Automakers provide an interesting study in cost management strategies. General Motors often provides a contrast to other U.S. manufacturers in that approximately 46,000 of its workers are...
-
Methamphetamine (meth) is an addictive, synthetic drug made chiefly in small toxic labs (STLs) in homes, tents, barns, or hotel rooms. The manufacturing process is dangerous, often resulting in...
-
Provide a vision and mission statement of a public company of your choice. Based on the vision and mission statement, do you think... The vision statement is realistic and achievable? Why? Explain....
-
In the last few years, colleges and universities have signed exclusivity agreements with a variety of private companies. These agreements bind the university to sell that companys products...
-
Vanida Company understated its 2016 ending inventory by $27,000. Determine the impact this error has on ending inventory , cost of goods sold, and owners equity in 2016 and 2017.
-
Tri-State Bank and Trust is considering giving Wilfred Company a loan. Before doing so, management decides that further discussions with Wilfreds accountant may be desirable. One area of particular...
-
Lamden Company paid its employee, Chuck, wages of $163,000 in 2022. Calculate each of the following: Social Security withheld from Chucks wages, Medicare withheld from Chucks wages, Social Security...
-
assume that the plane is rough. There is now a non-zero coefficient of kinetic (sliding) friction: H=.1 Also assume: 0= 12, g= 10 m/s. Finally, assume: The mass gets flicked Up the Plane with an...
-
Suppose that Tim is unable to buy the posters separately, but can buy the bundle of all five posters for a total price of $500. What is his consumer surplus?
-
goal (i.e. value of heuristic function) is reported de no Pacman is trying to eat all the dots; in each step pacman moves into an adjacent position (N, S, BX 163 Figure 2: Pacman problem E, or W)....
-
How have you seen the language surrounding relationships, and our views on defining our relationships evolve in society? As our language and views have evolved, how have you seen things like the...
-
Non-neutral industrial policies are more controversial, in the economic policy literature, compared to neutral industrial policies. Explain a neoclassical argument against non-neutral industrial...
-
Identify the drawbacks of the described profit-and-loss distributional approach.
-
Which of the following streaming TV devices does not involve use of a remote controller? A) Google Chromecast B) Apple TV C) Amazon Fire TV D) Roku
-
Oxygen at \(100^{\circ} \mathrm{F}\) and \(20 \mathrm{psia}\) is flowing at \(450 \mathrm{ft} / \mathrm{sec}\) in a duct. A valve is quickly shut, causing a normal shock to travel back through the...
-
You might hear people say that they need to learn to live within a budget. The funny thing is that most people who say this havent actually prepared a personal budget, nor do they intend to. Instead,...
-
(a) What is budgetary control? (b) Fred Barone is describing budgetary control. What steps should be included in Freds description?
-
The static manufacturing overhead budget based on 40,000 direct labor hours shows budgeted indirect labor costs of $54,000. During March, the department incurs $64,000 of indirect labor while working...
-
Intro You have collected the following information about a company: Source of capital Market value Book value After-tax cost Long-term debt 100,000 100,000 0.08 Preferred stock 60,000 72,000 0.11...
-
IV (Mortgage-Backed Securities) 15 points You purchase an MBS 9, 30 year with a face value of $100,000 a) What is your monthly payment? b) What is the interest and principal earned over 5 years c)...
-
Based on the following information, what is the expected return? (Input decimal, keep 4 digits. For example, if you get 7.56%, then input 0.0756.) Probability of State of Rate of Return if State of...
Study smarter with the SolutionInn App