1.The cost of goods sold for Home Depot last year amounted to $3,530,800 and the average inventory at cost was $1,574,182. The published inventory turnover at cost is 5.2. Calculate the inventory turnover at cost, and if it is less than the published rate, calculate the target average inventory at cost. (Round your answer to the nearest dollar)

a. $302,727 b. $679,000 c. $490,864 d. $981,727

2.

Lucent Technology maintains a gross margin of 40% on all of its merchandise. In April the company had a beginning inventory of $518,700, net purchases of $312,400, and net sales of $750,400. Use the gross profit method to estimate the cost of ending inventory as of March 31.

	a.	$120,000
	b.	$329,940
	c.	$380,860
	d.	$156,160