Greenfor is a large producer of lumber and paper products. The company has a periodic inventory system

Question:

Greenfor is a large producer of lumber and paper products. The company has a periodic inventory system and uses the weighted-average cost flow assumption. You gathered the following information regarding the company’s lumber operations.
■ The variable manufacturing cost of production is $90,000/mbf.
■ Fixed production costs including depreciation are $120 million.
■ Inventory at the beginning of 2012 was $216 million, with physical quantity of 1,540 mbf.
■ December 31, 2012 inventory quantity was 1,950 mbf.
■ In 2011, the company sold 2,270 mbf.
■ In 2012, the company sold 2,820 mbf.
Required:
a. Using absorption costing, calculate the cost per mbf for lumber produced in 2012.
b. Using absorption costing, calculate the cost of goods sold for 2012 and the at December 31, 2012.
c. Calculate the using the above information.
d. Describe the purpose of the turnover ratio. What does the ratio mean?
e. Using the available information, provide an alternate calculation of the that is conceptually superior to that used in part (c).
f. If the variable costing method had been used (for the current and all prior years), how much would be cost of goods sold for 2012? Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...