Fina 3048			Inventory Assignment		W-23				1) FIFO Method
											Date	Purchases	Sales	Balance		4)
												Quantity	Unit Cost	Value	Quantity	Unit Cost	Value	Quantity	Unit Cost	Value		Sales Revenue
Complete the following requirements using the information provided.					01-Mar							60	$7.00	$420.00		Date	Quantity	selling price	Value
Use the proper format to record entries and prepare statements						03-Mar				40	$ 9.85	$ 394.00	20	$9.85	$197.00		03-Mar	40	9.85	394
In order to have the assignment graded it MUST be submitted as a PDF file					10-Mar	120	7.40	$888.00				120	$7.40	$888.00		17-Mar	70	10.00	700
Late assignments wil be subject to a 25% deduction for each day late					17-Mar				70	20*9.85	$ 197.00					28-Mar	100	13.50	1350
																50*10	$ 500.00	70	$10.00	$700
At the Breakfast Spot an inventory card is prepared for each menu item.					21-Mar	44	$8.00	$352				44	$8.00	$352
The inventory card for breakfast sausage shows the following details.
											28-Mar				100	70*10	$ 700.00
Mar 1	60 kg of sausage remain from last month in inventory at a cost of $7.00 per kg								30*13.50	$ 405.00	14	$13.50	$189.00			Total Revenue		2444
Mar 3	40 kg are sold for $9.85 /kg																				sales=2444		$1,534.00
Mar 10	120 kg are purchased at a cost of $7.40 / kg							31-Mar	50	$9.00	$450.00				50	$9.00	$ 450.00			COGS
Mar 17	70 kg are sold for $10.00 /kg																				Gross Profit=		Sales-COGS
Mar 21	44 kg are purchases for $8.00 / kg										1690			$2,196			$3,196					$910
Mar 28	Sold 100kg are sold for $13.50								Ending Inventory Value	64*9	576								Gross profit percentage=gross profit/sales revenue*100
Mar 31	50 kg are purchases at a cost of $9.00 / kg																				$ 37.23
The company uses the perpetual inventory method.							2) Weighted Average Method										Average Inventory = ($420.00 + $1,063.00) / 2 = $741.50
											Date	Purchases	Sales	Balance		5.)	Ratio=	1534/741.50
Requirements:											Quantity	Unit Cost	Value	Quantity	Unit Cost	Value	Quantity	Unit Cost	Value					2.1
1	Calculate the value of inventory at each of the above dates and determine				01-Mar							60	$7.00	$420					2.1 times
	the ending inventory at the end of April using the FIFO inventory method,				03-Mar				40	$ 9.85	$ 394.00	20	$9.85	$197
	on inventory chart provided								10-Mar	120	7.40	$888				140	$7.75	$1,085
											17-Mar				70	$ 10.00	$700	70	$5.50	$385
2	Calculate the value of inventory at each of the above dates and deterimne				21-Mar	44	8	$352				114	$6.46	$737
	the ending inventory balance at the end of April						28-Mar				100	$ 13.50	$ 1,350.00	14	$43.79	$613
	using the Weighted Average Method, on the chart provided.					31-Mar	50	9	450				64	$16.61	$1,063
3	Which inventory valuation method should be used when the inventory
	includes perishable product (items with expiration dates ) and explain why?							1690			2444			$ 4,500
	Give an example of a type of inventory that would be perisable.					Endind inventory		64*16.91	$1,063.00
4	Compute the company's revenue earned on the chart provided and then
	calculate gross profit percentage. Using FIFO, How does the gross profit				3)
percentage compare with the industy average of 35% ? Explain
5	Calculate the inventory turnover ratio for the month and explain how this
	compares to the industry average of 2.3 times. Round to one decimal place.