Discussion questions (QS 6-11, QS 6-13, Ex6-9) QS 6-11 Inventory costs A car dealer acquires a used car for $3,000, terms FOB shipping point. Additional costs in obtaining and offering the car for sale include $150 for transportation-in, $200 for import duties, $50 for insurance during shipment, $25 for advertising, and $250 for sales staff salaries. For computing inventory, what cost is assigned to the used car? QS 6-13 Inventory errors In taking a physical inventory at the end of year 2011, Nadir Company forgot to count certain units. Explain how this error affects the following: (a) 2011 cost of goods sold, (b) 2011 gross profit, (c) 2011 net profit, (d) 2012 net profit, (e) the combined two-year profit, and (f) profit for years after 2012. Ex 6-9 Inventory turnover and days' sales in inventory Use the following information for Ryder Co. to compute inventory turnover for 2011 and 2010, and its days' sales in inventory at December 31, 2011 and 2010. (Round answers to one decimal.) Comment on Ryder's efficiency in using its assets to increase sales from 2010 to 2011. Cost of goods sold Ending inventory 2011 2010 $643,825 $426,650 96,400 86,750 2009 $391,300 91,500

QS 6-11 Inventory costs A car dealer acquires a used car for $3,000, terms FOB shipping point. Additional costs in obtaining and offering the car for sale include $150 for transportation-in, $200 for import duties, $50 for insurance during shipment, $25 for advertising, and $250 for sales staff salaries. For computing inventory, what cost is assigned to the used car? QS 6-13 Inventory errors In taking a physical inventory at the end of year 2011, Nadir Company forgot to count certain units. Explain how this error affects the following: (a) 2011 cost of goods sold, (b) 2011 gross profit, (c) 2011 net profit, (d) 2012 net profit, (e) the combined two-year profit, and (f) profit for years after 2012. Ex 6-9 Inventory turnover and days' sales in inventory Use the following information for Ryder Co. to compute inventory turnover for 2011 and 2010, and its days' sales in inventory at December 31, 2011 and 2010. (Round answers to one decimal.) Comment on Ryder's efficiency in using its assets to increase sales from 2010 to 2011