Question
Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Salsa Company follow: 20Y7 20Y6 Cost of merchandise sold
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Inventory Turnover and Days' Sales in Inventory
Financial statement data for years ending December 31 for Salsa Company follow:
20Y7 20Y6 Cost of merchandise sold $2,912,700 $3,009,790 Inventories: Beginning of year 489,000 481,900 End of year 533,000 489,000 a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place.
Inventory Turnover 20Y7 fill in the blank 1 20Y6 fill in the blank 2 b. Determine the days' sales in inventory for 20Y7 and 20Y6. Assume 365 days a year. Round interim calculations and final answers to one decimal place.
Days' Sales in Inventory 20Y7 fill in the blank 3 days 20Y6 fill in the blank 4 days c. Does the change in the inventory turnover and the days' sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend?
Check My Work
Periodic Inventory by Three Methods
The units of an item available for sale during the year were as follows:
Jan. 1 | Inventory | 1,080 units @ $124 |
Feb. 17 | Purchase | 1,440 units @ $125 |
July 21 | Purchase | 1,655 units @ $126 |
Nov. 23 | Purchase | 1,145 units @ $126 |
There are 1,220 units of the item in the physical inventory at December 31. The periodic inventory system is used.
a. Determine the inventory cost by the first-in, first-out method. $fill in the blank 1
b. Determine the inventory cost by the last-in, first-out method. $fill in the blank 2
c. Determine the inventory cost by the weighted average cost method. Do not round intermediate calculation and round final answer to the nearest whole dollar. $fill in the blank 3
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