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Just-in-Time Inventories Mitch Manufacturing Company uses the perpetual inventory system and plans to use raw materials costing $1,200,000 in manufacturing its products. Mitch will operate its factors 300 days during the year. Currently, Mitch follows the just-in-case philosophy with its raw materials inventory, keeping raw materials costing $12,000 in its raw materials inventory. Mitch plans to switch to the just-in-time manufacturing philosophy by keeping only the raw materials needed for the next two days of production. Calculate the new raw materials inventory level after Mitch implements the just-in-time manufacturing philosophy in its factory. Just in Time Inventories Raw Material used per day: $ 0 Raw material inventory level: $0 Inventory Costing Methods-Periodic Method The Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory: July 1 Beginning inventory 30 units @ $9 per unit 50 units @$11 per unit 10 Purchased 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar. A. First-in, First-out: $ 0 Ending Inventory $ 0 Cost of Goods Sold: B. Last-in, first-out: $ 0 Ending Inventory $ 0 Cost of Goods Sold: C. Weighted-average cost: $ 0 Ending Inventory $ 0 Cost of Goods Sold Departures from Acquisition Cost Determine the proper total inventory value for each of the following items in Viking Company's ending inventory: a. Viking has 500 video games in stock. The games cost $36 each, but their year-end net realizable value is $28. b. Viking has 400 rolls of camera film that are past the expiration date marked on the film's box. The films cost $1.65 each and are normally sold for $3.30. To clear out these old films, Viking will drop their selling price to $1.30. There are no related selling costs. C. Viking has seven cameras in stock that have been used as demonstration models. The cameras cost $180 and normally sell for $280. Because these cameras are in used condition, Viking has set the selling price at $160 each. Expected selling costs are $15 per camera. 0 . $ b. $ 0 0 . $ Inventory Turnover and Days' Sales in Inventory The Western Company installed a new inventory management system at the beginning of 2018. Shown below are data from the company's accounting records as reported out by the new system: 2018 2019 Sales Revenue $11,000,000 $14,000,000 Cost of Goods Sold 5,000,000 6,000,000 Beginning Inventory 620,000 630,000 Ending Inventory 630,000 750,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for 2018 and 2019. Round your answer to two decimal points, when needed. 2018 2019 Inventory turnover 0 0 Days' sales in inventory 0 0 Just-in-Time Inventories Mitch Manufacturing Company uses the perpetual inventory system and plans to use raw materials costing $1,200,000 in manufacturing its products. Mitch will operate its factors 300 days during the year. Currently, Mitch follows the just-in-case philosophy with its raw materials inventory, keeping raw materials costing $12,000 in its raw materials inventory. Mitch plans to switch to the just-in-time manufacturing philosophy by keeping only the raw materials needed for the next two days of production. Calculate the new raw materials inventory level after Mitch implements the just-in-time manufacturing philosophy in its factory. Just in Time Inventories Raw Material used per day: $ 0 Raw material inventory level: $0 Inventory Costing Methods-Periodic Method The Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory: July 1 Beginning inventory 30 units @ $9 per unit 50 units @$11 per unit 10 Purchased 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar. A. First-in, First-out: $ 0 Ending Inventory $ 0 Cost of Goods Sold: B. Last-in, first-out: $ 0 Ending Inventory $ 0 Cost of Goods Sold: C. Weighted-average cost: $ 0 Ending Inventory $ 0 Cost of Goods Sold Departures from Acquisition Cost Determine the proper total inventory value for each of the following items in Viking Company's ending inventory: a. Viking has 500 video games in stock. The games cost $36 each, but their year-end net realizable value is $28. b. Viking has 400 rolls of camera film that are past the expiration date marked on the film's box. The films cost $1.65 each and are normally sold for $3.30. To clear out these old films, Viking will drop their selling price to $1.30. There are no related selling costs. C. Viking has seven cameras in stock that have been used as demonstration models. The cameras cost $180 and normally sell for $280. Because these cameras are in used condition, Viking has set the selling price at $160 each. Expected selling costs are $15 per camera. 0 . $ b. $ 0 0 . $ Inventory Turnover and Days' Sales in Inventory The Western Company installed a new inventory management system at the beginning of 2018. Shown below are data from the company's accounting records as reported out by the new system: 2018 2019 Sales Revenue $11,000,000 $14,000,000 Cost of Goods Sold 5,000,000 6,000,000 Beginning Inventory 620,000 630,000 Ending Inventory 630,000 750,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for 2018 and 2019. Round your answer to two decimal points, when needed. 2018 2019 Inventory turnover 0 0 Days' sales in inventory 0 0
