18 330 The following data is available for one of the products sold by Chan Company for the month of April: April 1 On hand, 10 units at $8 each S 80 5 Purchased 30 units at $7.80 each 234 Purchased 40 units at $8.25 each 20 Sold 75 units for $13 each 24 Purchased 20 units for $8.25 each 165 Chan Company's ending inventory for April was 25 units. Required: Complete the following table by determining the amounts of the April 30 inventory and cost of goods sold for April, under each of the inventory costing methods listed below. Assume that Chan Company uses a perpetual inventory system. Weighted Average Cost of Goods Sold (COGS) FIFO Ending Inventory Part B (6 Marks) Valley Inc. has compiled the following information concering items in its inventory at December 31: Item A B Quantity 120 70 60 Cost per Unit $45 160 100 Net Realizable Value (NRV)per unit $50 120 110 Required: 1. The carrying amount of the total inventory of Valley Inc. using the lower of cost or net realizable value (LCNRV) rule applied on an item by item basis is: (4 marks) 2. The loss due to inventory write down to LCNRV is: (2 marks) SUMMARY SHEET OF SELECTED RATIOS 1.Accounts receivable turnover Net credit sales Average accounts receivable 2. Inventory turnover Cost of goods sold Average inventory 3. Current ratio = Current assets Current liabilities 4. Debt to equity ratio= Total liabilities Total equity 5. Cash ratio=Cash and short-term investments Current liabilities 6. Return on assets ratio = Average total assets Net income + (Interest expense x (1- tax rate)) 7. Quick ratio = Cash + Accounts receivable + short term investments Current liabilities 8 Return on equity ratio = Net income Average equity 9. Gross profit percentage ratio = Gross profit (or Gross Margin) Net sales 10. Net profit margin percentage ratio Net income Net sales 11. Earnings per share (EPS) = (Net Income - Preferred Dividends) Average number of common shares outstanding