Inventory Ratio Calculations (LO3, 4)

Delroi, Inc., provided the following data for 2011 and 2012:

Inventory Decembersie2 00a ot ee crcio ee oa. fee imine $200,200 Decembersite20It tka eaats 25 oe Be eee 190,400 December si 20 123s = satin oe a ae SR Se Bee eee 182,500 Cost of goods sold AOR hata tasters aan MEO ORC aoe eae MER RE Si oe cee c $654,000 OE ane Mouser cpt amc ve RO Siac aie eee 6 Sn ne Se 724,000 Gross margin 2 Odelemone tsrale steed mee dlW ale ais Miike aie teal os SNe eee $340,000 PARI sins can onan CeO race oe EMT rer mers e en ee kl 410,000 Required

(round all calculations to two decimal places)

a. Calculate the inventory turnover ratio for 2011 and 2012.

b. Calculate the gross margin return on inventory investment for 2011 and 2012.

Inventory Ratio Calculations (LO3, 4)

McMahan, LTD., provided the following data for 2011 and 2012:

Inventory DECEMDERB Ie ZOO A pea tw. dccun usw: Sealbcue aso pera ee Se $176,000 DecemberSte2Ol it Ce ee eee ea 194,000 Cost of goods sold CAUIMI Sehiiit ian dade CTR ORE ec hi ee $546,000 PAO Ve oreo oko ea RE ee ERE A Cokes coke on cee 589,000 Gross margin AU Ui epewee cee cutee nuctecre Sheyd e-c ase, cee coe sci ne Mee Sata oe $256,000 DON Zaprope tetk eyr ee steR ittasy eine Me oben aie ocaie sichB nistie x nests eee 287,000 Required

(round all calculations to two decimal places)

Chapter 7 | Additional Topics in Product Costing

a. Calculate the inventory turnover ratio for 2011 and 2012.

b. Calculate the gross margin return on inventory investment for 2011 and 2012.

EXERCISES