The cost of goods sold computations for Silver Company and Gold Company are shown below.

Silver Company Gold Company Beginning inventory $ 47,000 $ 71,000 Cost of goods purchased 200,000 290,000 Cost of goods available for sale 247,000 361,000 Ending inventory 55,000 69,000 Cost of goods sold $192,000 $292,000 Instructions

(a) Compute inventory turnover and days in inventory for each company.

(b) Which company moves its inventory more quickly?

*E6-15 Roselle Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at $600 each. On January 10, Roselle purchased 6 units at $648 each. The company sold 2 units on January 8 and 4 units on January 15.

Instructions Compute the ending inventory under (1) FIFO, (2) LIFO, and (3) moving-average cost.

*E6-16 Eastland Company reports the following for the month of June.

Date Explanation Units Unit Cost Total Cost June 1 Inventory 200 $5 $1,000 12 Purchase 300 6 1,800 23 Purchase 500 7 3,500 30 Inventory 160 Instructions

(a) Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 400 units occurred on June15 for a selling price of $8 and a sale of 440 units on June 27 for $9.

(b) How do the results differ from