Define average days in inventory.

Q: is the sum of beginning inventory and net purchases during the period.

A: Net purchases means All purchases less purchase returns and trade discounts

Q: What is the cost of the inventory on January 31 using FIFO method?

A: FIFO is First in First out method of inventories, which says that inventories which comes in first…

Q: The company uses the specific identification cost method for inventory valuation. Calculate the cost…

A: Purchases Sales Balance Date Quantity Unit Cost Value Quantity Unit Cost Value Quantity Unit…

Q: What is Sixten's EOQ and average inventory for the year?

A: EOQ is the economic order quantity which is that order of quantity which has been ordered by the…

Q: What is the inventory on April 30?

A: Step 1 Inventory accounting is the accounting that deals with valuing and accounting for changes in…

Q: d. days in inventory e. inventory turn over f. average collection period

A: Days in inventory : Days in inventory=Average inventoryCost of goods sold×100=187+23824,060×100=5.24…

Q: What is the Cost of Sales for June, using the perpetual inventory system?

A: Cost of Sales Cost of sales which is calculated by the adding up of opening value of inventory with…

Q: Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods.

A: In periodic inventory system inventory valuation is done at the end of the period and entries for…

Q: Using the data below, determine the ending inventory amount assuming the weighted average method…

A: The periodic inventory system is an inventory valuation system that computes ending inventory at the…

Q: On the basis of the following data, estimate the cost of the merchandise inventory at June 30 by the…

A: Ratio of Cost to Retail Price = Merchandise Available for Sale at cost/Merchandise Available for…

Q: (a) Calculate the cost of goods sold for May and the ending inventory at May 31 using the FIFO…

A: Note: Colour coding has been used for better understanding. Answers can be given without coding as…

Q: Days in inventory is found by Group of answer choices dividing inventory by cost of goods sold per…

A: The day in inventory is a financial ratio that indicates the average time in days that a company…

Q: compute the number of units in ending inventory

A: Ending inventory represents the units of inventory that is remaining unsold as at a given date.…

Q: What is the ending inventory at cost at December 31, using the FIFO retail inventory method?

A: Under, the FIFO retail inventory method, the inventory is value based on retail inventory price used…

Q: How much are the ending inventory and cost of sales of Thursday Co respectively under average cost…

A: First in, first out:First is, first out is the method of inventory management and inventory…

Q: Give examples of costs included in annual carrying costs of inventory when using the EOQ decision…

A:

Q: Compute the June 30 inventory and the June cost of goods sold using the LIFO (last in first out )…

A: Solution:- Computation of the June 30 inventory and the June cost of goods sold using the LIFO (last…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: A ratio that provides information regarding the number of times a company sold or replaced its…

Q: Based on the following data for the current year, what is the inventory turno-

A: Answer:   Option d

Q: The current period's ending inventory is: Multiple Choice The next period's beginning inventory. The…

A: Cost of goods sold = Beginning inventory + Net purchases - Ending inventory

Q: calculate these g)   Inventory turnover      times (h)   Days in inventory      days (i)   Times…

A: g) For the year 2017

Q: Determine the ending inventory cost and the cost of goods sold by three methods. Round interim…

A: FIFO:               Inventory at end = 20(20×120)+(60×128)                            = $11,020…

Q: If ABC uses the average retail method, how much would the estimated ending inventory be?

A: Retail Inventory method is used to verify the Ending Inventory Value. There are 2 methods: Average…

Q: Understand and apply rules for measurement of inventory at the end of the reporting period.

A:

Q: How do we update inventory using the year-end physical count and begin the next cycle using the…

A: IN PERIODIC INVENTORY SYSTEM, CONTINUOUS RECORD OF CHANGING IN INVENTORY IS NOT MAINTAINED.THE…

Q: Average Inventory conversion period

A: Inventory turnover ratio = Credit sales/((Opening inventory + Closing inventory)/2)   Particulars…

Q: Determine cost of goods sold during the period under a periodic inventory system using the…

A: COST OF BEGINNING INVENTORY            = 3000 units * $5             = $15000 PURCHASE COST…

Q: Define days' sales in inventory (what do the results mean). Provide an example

A: Days sales in inventory means how much days company will take to convert its inventory into sales.…

Q: .Using the periodic inventory system, compute the cost of ending inventory, cost of goods sold, and…

A: Solution: A Perpetual Inventory system is a system which is automatically recorded and updated the…

Q: (a) Calculate the cost of goods sold and ending inventory for the month using specific…

A: Methods of Valuation of Inventory 1. Weighted Average Cost: Under this method, an average cost of…

Q: a. Compute the inventory turnover ratio (ITR). b. Compute the weeks of supply (WS).

A: Inventory Turnover Ratio (ITR) = Cost of Goods sold/Total Inventory Total Inventory = Value of…

Q: How would you interpret an inventory turnover ratio of 12.4?

A: The question is based on the concept of ratio analysis and an inventory turnover ratio. Inventory…

Q: Determine the gross profit, cost of merchandise sold, and ending inventory on July 31 using the (a)…

A: Gross Profit is the difference between Sales and COGS. Gross profit indicates how much profit…

Q: If a company understates its inventory, what are the effects on cost of goods sold and net income…

A: The cost of goods sold is calculated as difference between cost of goods available for sale and…

Q: calculate number of days sales in inventory

A: Days sales in inventory means number of days it takes the firm to sell off its inventory.  Days…

Q: Determining the Beginning and Ending Inventory from a Partial Sp Periodic Inventory System From the…

A: The term inventory refers to both the raw materials in the manufacture and the finished goods that…

Q: petermine the gross profit, cost of merchandise sold, and ending inventory on July 31 using the (a)…

A: First-in-First-Out (FIFO): In First-in-First-Out method, the costs of the initially purchased items…

Q: Required: Calculate the cost of goods sold and the cost of ending inventory using the average cost…

A: Step 1  Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a…

Q: Compute for each year the inventory turnover. (R

A: Compute the cost of goods sold in 2020.

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.