bridge Business Publishe Chapter Accounting for inventory LOS Inventory Turnover and Days" Sales In Inventory The Southern Corporation installed a new in- ventory management system at the beginning of 2018 Shown below are data from the company's spotting records as reported by the new system: 2018 Sales revenue... Cost of goods sold. Beginning inventory Ending inventory... .................. 510 000 000 8,800.000 2 500 000 ... . 2.300.000 2019 $20,000,000 200.000 2.530,000 2.000.000 ing the ing the Calculate the company's (a) inventory turnover (round to three decimal places) and (b) days' sales in eventory for 2018 and 2019. Comment on your results. Goods in Transit The Yankee Wholesale Company sells merchandise to a variety of retailers. Yankee uses different freight terms with its various customers and suppliers. All sales are made on account L01 Required Walue For each of the following transactions, indicate which company has ownership of the goods in transit: Yankee sold merchandise to X-Mart Stores with shipping terms of ROB shipping point Yankee purchased merchandise from Zendo Manufacturing Company, with shipping terms of FOB destination Yankee sold merchandise to Mary's Boutique, with shipping terms of FOB destination. d. Sunshine Manufacturing Company sold merchandise to Yankee, with shipping terms of FO.B. shipping point Yankee purchased merchandise from Warfield Manufacturing Company, with freight terms of F.OB shipping point Stevenson Store purchased merchandise from Yankee, with shipping terms of FOB shipping point P-7A. Lower-of-Cost-or-Net Realizable Value Method The Vandy Company had the following inventory year-end: - valur L04 inven Unit Price Quantity Cost Net Realizable Value Sold Model X1. Model X2 Model B. 2015 Required Determine the value of ending inventory after applying the lower-of-cost-or-net reliable value method to each item of inventory b. Would the net income be lower under the cost method or the lower-of-costo realizable value method sand meth bridge Business Publishe Chapter Accounting for inventory LOS Inventory Turnover and Days" Sales In Inventory The Southern Corporation installed a new in- ventory management system at the beginning of 2018 Shown below are data from the company's spotting records as reported by the new system: 2018 Sales revenue... Cost of goods sold. Beginning inventory Ending inventory... .................. 510 000 000 8,800.000 2 500 000 ... . 2.300.000 2019 $20,000,000 200.000 2.530,000 2.000.000 ing the ing the Calculate the company's (a) inventory turnover (round to three decimal places) and (b) days' sales in eventory for 2018 and 2019. Comment on your results. Goods in Transit The Yankee Wholesale Company sells merchandise to a variety of retailers. Yankee uses different freight terms with its various customers and suppliers. All sales are made on account L01 Required Walue For each of the following transactions, indicate which company has ownership of the goods in transit: Yankee sold merchandise to X-Mart Stores with shipping terms of ROB shipping point Yankee purchased merchandise from Zendo Manufacturing Company, with shipping terms of FOB destination Yankee sold merchandise to Mary's Boutique, with shipping terms of FOB destination. d. Sunshine Manufacturing Company sold merchandise to Yankee, with shipping terms of FO.B. shipping point Yankee purchased merchandise from Warfield Manufacturing Company, with freight terms of F.OB shipping point Stevenson Store purchased merchandise from Yankee, with shipping terms of FOB shipping point P-7A. Lower-of-Cost-or-Net Realizable Value Method The Vandy Company had the following inventory year-end: - valur L04 inven Unit Price Quantity Cost Net Realizable Value Sold Model X1. Model X2 Model B. 2015 Required Determine the value of ending inventory after applying the lower-of-cost-or-net reliable value method to each item of inventory b. Would the net income be lower under the cost method or the lower-of-costo realizable value method sand meth
