1. Inventory Turnover and Days' Sales in Inventory

Shown below are data from the Northern Company's accounting records:

	Year 1	Year 2
Sales Revenue	$1,000,000	$1,100,000
Cost of Goods Sold	900,000	990,000
Beginning Inventory	100,000	130,000
Ending Inventory	130,000	200,000

Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round your answer to two decimal points.

	Year 1	Year 2
Inventory turnover
Days' sales in inventory

2. Lower-of-Cost-or-Net Realizable Value Method

The following data are taken from the Browning Corporation's inventory accounts:

Item Code	Quantity	Unit Cost	Net Realizable Value
ACE	100	$95	$94
BDF	300	100	101
GHJ	400	90	88
MBS	200	93	97

Calculate the value of the company's ending inventory using the lower-of-cost-or-net realizable value method applied to each item of inventory.

Ending Inventory Value: $

3. Departures from Acquisition Cost Determine the proper total inventory value for each of the following items in Viking Company's ending inventory:

1. Viking has 1020 video games in stock. The games cost $61 each, but their year-end replacement cost is $51. Viking has been selling the games for $102, but competitors are now selling them for $85. Viking plans to drop its price to $85. Viking's normal gross profit on video games is 40%.
2. Viking has 510 rolls of camera film that are past the expiration date marked on the film's box. The films cost $2.81 each and are normally sold for $9.54. New replacement films still cost $2.81. To clear out these old films, Viking will drop their selling price to $2.50. There are no related selling costs.
3. Viking has 9 cameras in stock that have been used as demonstration models. The cameras cost $306 and normally sell for $476. Because these cameras are in used condition, Viking has set the selling price at $272 each. Expected selling costs are $17 per camera. New models of the camera (on order) will cost Vikings $340 and will be priced to sell at $544.

a.	Answer 1
b.	Answer 2
c.	Answer 3

4. Errors in Inventory Counts

The following information was taken from the records of Tinker Enterprises:

	Year 1	Year 2
Beginning Inventory	$70,000	$84,000
Cost of goods purchased	560,000	588,000
Cost of goods available for sale	630,000	672,000
Ending inventory	84,000	77,000
Cost of goods sold	$546,000	$595,000

The following two errors were made in the physical inventory counts: 1. Year 1 ending inventory was understated by $11,200 2. Year 2 ending inventory was overstated by $5,600

Compute the correct cost of goods sold for both years.

	Year 1	Year 2
Cost of goods sold

5. Inventory Costing Methods-Periodic Method The Lippert Company uses the periodic inventory system. The following July data are for an item in Lippert's inventory:

July	1	Beginning inventory	1,330	units @	$20	per unit
	10	Purchased	1,350	units @	$21	per unit
	15	Sold	1,360	units @
	26	Purchased	1,325	units @	$22	per unit

Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar.

A.	First-in, First-out:
	Ending Inventory
	Cost of Goods Sold:
B.	Last-in, first-out:
	Ending Inventory
	Cost of Goods Sold:
C.	Weighted-average cost:
	Ending Inventory
	Cost of Goods Sold

6. Inventory Costing Methods-Periodic Method Archer Company is a retailer that uses the periodic inventory system.

August	1	Beginning inventory	90	units of Product A @	$1,600	total cost
	5	Purchased	110	units of Product A @	$2,116	total cost
	8	Purchased	210	units of Product A @	$4,416	total cost
	11	Sold	160	units of Product A

Calculate the August cost of goods sold and the ending inventory at August 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

Do not round until your final answers. Round your final answers to the nearest dollar.33

A. First-in, first-out
	Ending Inventory
	Cost of Goods Sold
B. Last-in, first-out
	Ending Inventory
	Cost of Goods Sold
C. Weighted-average cost
	Ending Inventory
	Cost of Goods Sold