QUESTION 5 47 A company had the following purchases during its first year of operations: Purchases 30 units at $30 35 units at $50 Sales January March May 42 units at $60 The company uses FIFO method to determine its cost of inventory a. What is the cost of goods sold in May? b. What is the total cost of goods purchased during the year?

QUESTION 5 47 A company had the following purchases during its first year of operations: Purchases 30 units at $30 35 units at $50 Sales January March May 42 units at $60 The company uses FIFO method to determine its cost of inventory a. What is the cost of goods sold in May? b. What is the total cost of goods purchased during the year?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.11E: Inventory Costing Methods VanderMeer Inc. reported the following information for the month of...

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Monster Beverage and Brown-Forman: Inventory turnover 7 and number of days' sales in inventory Monster Beverage Corporation develops, markets, and sells energy and other alternative beverage brands. Brown-Forman Corporation manufactures and sells a wide variety of spirit and wine beverages, such as Jack Daniels. The cost of goods sold and inventory were obtained from a recent annual report for both companies as follows (in millions): Monster Beverage Brown-Forman Cost of goods sold 1,125 928 Inventories: Beginning of year 222 882 End ofyear 175 827 A. Determine the inventory turnover for both companies. (Round all calculations to one decimal place.) B. Determine the number of days sales in inventory for both companies. (Use 365 days and round all calculations to one decimal place.) C. Interpret the difference in inventory efficiency based on the companies respective product types.
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