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Delta Automotive Scenario: Perpetual Inventory System Data: Beginning Inventory: $100,000 Purchases: $400,000 Ending Inventory: $60,000 Sales Revenue: $600,000 Requirements: Calculate the Cost of Goods Sold
- Delta Automotive
Scenario: Perpetual Inventory System
Data:
- Beginning Inventory: $100,000
- Purchases: $400,000
- Ending Inventory: $60,000
- Sales Revenue: $600,000
Requirements:
- Calculate the Cost of Goods Sold using the perpetual inventory system.
- Determine the average inventory level during the period.
- Analyze the impact of inventory turnover on COGS and financial performance.
- Discuss strategies to optimize Delta Automotive's inventory management.
- Prepare an income statement with detailed COGS calculation.
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson
17th edition
78025826, 978-1259564239, 1259564231, 978-0078025822
