Early in 2017, Fedor Company switched to a just-in-time inventory system. Its sales and inventory amounts for

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Early in 2017, Fedor Company switched to a just-in-time inventory system. Its sales and inventory amounts for 2016 and 2017 are shown below.

2016 2017 Sales revenue $3,120,000 $3,713,000 Cost of goods sold 1,200,000 1,425,000 Beginning inventory 170,000 210,000 Ending inventory 210,000 90,000 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 2 years.

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Financial Accounting

ISBN: 9781118953907

8th Edition

Authors: Paul D Kimmel, Jerry J Weygandt, Donald E Kieso

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