Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The disclosure note below is from the 2 0 2 0 1 0 - K report of Casey's General Stores, Inc., an operator of convenience

The disclosure note below is from the 202010-K report of Casey's General Stores, Inc., an operator of convenience stores ($ thousands).
Inventories
Inventories, which consist of merchandise and fuel, are stated at the lower of cost or market. For fuel, cost is determined through the use of the first-in, first-out (FIFO) method. For merchandise inventories, cost is determined through the use of the last-in, first-out (LIFO) method. The excess of replacement cost over the stated LIFO value was $87,546 and $80,814 at April 30,2020 and 2019, respectively. There were no material LIFO liquidations during the period presented. Below is a
summary of the inventory values at April 30,2020 and 2019.
In 2020, Casey's General Stores reported sales revenue of $9,175.3 million and cost of goods sold of $7,030.6 million.
a. Calculate the amount of inventories purchased by Casey's General Stores in 2020. Round intermediate calculations and answers to one decimal place.
b. What amount of gross profit would Casey's General Stores have reported if the FIFO method had been used to value all inventories in 2020. Round intermediate calculations and answer to one decimal place.
c. Calculate the gross profit margin (GPM) as reported and assuming that the FIFO method had been used to value all inventories. Round answers to two decimal places (i.e.,0.15785=15.79%)
As reported%:
Under FIFO%:
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Continuous Auditing Theory And Application

Authors: David Y. Chan, Victoria Chiu

1st Edition

1787434141, 978-1787434141

More Books

Students also viewed these Accounting questions