Carrington Inc. began the year with $130,000 in merchandise inventory and ended the year with $190,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Carrington Inc. began the year with $130,000 in merchandise inventory and ended the year with $190,000 Sales and cost of goods sold for the year were $900,000 and $640,000, respectively (Use a 360 day year in your calculations.) a. Compute Carrington's inventory turnover ratio b. Compute the number of days sales in inventory. The following data is available for one of the products sold by LearningTree,Inc., which uses the perpetual inventory system: Mayl On hand, 1,000 units at $2.00 each 5 Purchased 2,000 units at $2.75 each 10 Sold2,500unitsat $16each 18 Purchased 2,000 units at $4.00 each 24 Sold1,500unitsat $12each 31 On hand ,1,000 units a. $2,000 5,500 8,000 If the moving average method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10? b. If the moving average method is used, what is the amount assigned to the ending inventory on May 30? C. If the LIFO method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10 ? f. d. If the LIFO method is used, what is the amount assigned to the ending inventory on May 30? e. Explain why the amounts for ending inventory are different under the two average cost methods - weighted average (periodic) and moving average (perpetual ). Explain why the amounts are different for LIFO under periodic and perpetual inventory systems. Carrington Inc. began the year with $130,000 in merchandise inventory and ended the year with $190,000 Sales and cost of goods sold for the year were $900,000 and $640,000, respectively (Use a 360 day year in your calculations.) a. Compute Carrington's inventory turnover ratio b. Compute the number of days sales in inventory. The following data is available for one of the products sold by LearningTree,Inc., which uses the perpetual inventory system: Mayl On hand, 1,000 units at $2.00 each 5 Purchased 2,000 units at $2.75 each 10 Sold2,500unitsat $16each 18 Purchased 2,000 units at $4.00 each 24 Sold1,500unitsat $12each 31 On hand ,1,000 units a. $2,000 5,500 8,000 If the moving average method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10? b. If the moving average method is used, what is the amount assigned to the ending inventory on May 30? C. If the LIFO method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10 ? f. d. If the LIFO method is used, what is the amount assigned to the ending inventory on May 30? e. Explain why the amounts for ending inventory are different under the two average cost methods - weighted average (periodic) and moving average (perpetual ). Explain why the amounts are different for LIFO under periodic and perpetual inventory systems.
Expert Answer:
Answer rating: 100% (QA)
a Compute Carringtons inventory turnover ratio The inventory turnover ratio measures the number of times a companys inventory is sold and replaced during a given period To calculate the inventory turn... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The actual variable cost of goods sold for a product was $ 70 per unit, while the planned variable cost of goods sold was $68 per unit. The volume increased by 1,200 units to 7,000 actual total...
-
A company's cost of goods sold for the year was $97,500. Ending inventory was $12,000 and $13,500 in the current and prior years, respectively. Required Calculate the company's inventory turnover...
-
Compute ending merchandise inventory and cost of goods sold for Cambridge using the FIFO inventory costing method. The periodic inventory records of Cambridge Prosthetics indicate the following for...
-
Recent trends in recruiting rely on social capital by ______. Multiple choice question. making use of structural holes between groups in a social network where there are few relationships bridging...
-
The sides and the base of a punch bowl are of uniform thickness t. If t <
-
If a small part of this magnet loses its superconducting properties and the resistance of the magnet wire suddenly rises from 0 to a constant 0.005 , how much time will it take for the current to...
-
Railway Oil and Gas Company owned the following unproved property as of the end of 2010: Although no activity took place on Lease A during the year, Railway decided that Lease A was not impaired,...
-
Romero Information Services, Inc., has two service departments: human resources and billing. Romeros operating departments, organized according to the special industry each department serves, are...
-
Complete the table to find the indefinite integral. (Use C for the constant of integration.) Original Integral dx Rewrite Integrate Simplify 9. dx + C
-
Please explain the following: 1. In Scene 2 of Dutchman, Clay embarks on a rage-filled monologue against Lula and the idea that she understands anything about African American experience. What are...
-
II. Ames Bank decided to lend you Php500,000 today, but you must repay Php623,150 in 4 What rate is the bank charging you? years.
-
10. Schneider Inc. had the following information relating to 2018: Budgeted factory overhead Actual factory overhead Applied factory overhead Estimated labor hours P 74,800 P 78,300 P 76,500 44,000...
-
1. Give the main/longest chain name, functional group(s) name and IUPAC name of the following organic compound: CH3CH2CH2CH3. 2. Give the main/longest chain name, functional group(s) name and IUPAC...
-
Peter Phelps is a representative for Delta International Machinery and is paid $675 per week plus a commission of 2% on sales. His sales last week were $17,240. (Assume the SDI rate is 1% and that...
-
PROBLEM 23: Cost of Production Report month: The following information is available for DVC Corporation for the current Started this month Beginning WIP (3/5 incomplete) Total spoilage Abnormal...
-
1. Ben & Jerry's Homemade, Inc., the Vermont-based manufacturer of ice cream, frozen yogurt, and sorbet, once, admirably, had a 5 to 1 rule limiting the pay of its CEO -- $81,000 -- to the company's...
-
Cathy started her cab services for school going kids in her locality.She now plans to extend her services to office goers as well.The first people she thought of were the parents of the school...
-
For a Poisson process of rate , the Bernoulli arrival approximation assumes that in any very small interval of length , there is either 0 arrivals with probability 1- or 1 arrival with probability ....
-
The Finish Line Inc. reported the following items in its fiscal 2014 financial report (dollars in millions): Assume that counting errors caused the ending inventory in 2013 to be understated by $50...
-
On October 18, 2017, Daley Inc. purchased 100 shares of Orthon at $32 per share. The shares were held throughout the remainder of 2017 and 2018, and by December 31, 2017 and 2018, the per-share...
-
RDP and Brothers purchased a panel truck for $25,000 on January 1, 2017. It estimated the life of the truck to be five years, and it planned to depreciate an equal amount in each of the five years....
-
Study the format of the analysis of variances in Exhibit 12-12. Suppose production is 156,000 units. Also assume the following: Other data are as shown in Exhibit 12-12. Prepare an analysis of...
-
The following questions are based on the data contained in Exhibit 12-9. 1. Suppose actual production and sales were 8,000 units instead of 7,000 units. (a) Compute the sales-volume variance. Is the...
-
Belfair Kayak Company makes molded plastic kayaks. Standards costs for an entry-level whitewater kayak are: Direct materials, 60 kilograms @ $5.50 per kilogram Direct labour, 1.5 hours $16 per hour...
Study smarter with the SolutionInn App