Required: 1. State whether the transportation cost included in each purchase should be recorded as a cost of the inventory or immediately expensed. Immediately expensed OInventory cost 2. Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIFO) method. (Do not round intermediate calculations. Round final answers to the nearest dollar amount.) Chat on Cost of goods available for sale. Cost of goods sold Cost of ending inventory 3-a. Calculate the inventory turnover ratio, using the inventory on hand at December 31 as the beginning inventory. (Do not round intermediate. calculations. Round your answer to 1 decimal place.) Inventory turnover ratio times 3-b. The supplier reported that the typical inventory turnover ratio was 7.9. How does NGS's ratio compare? This implies that it is taking Nicole a slightly amount of time to sell her inventory than her supplier claims is typical.
Required: 1. State whether the transportation cost included in each purchase should be recorded as a cost of the inventory or immediately expensed. Immediately expensed OInventory cost 2. Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIFO) method. (Do not round intermediate calculations. Round final answers to the nearest dollar amount.) Chat on Cost of goods available for sale. Cost of goods sold Cost of ending inventory 3-a. Calculate the inventory turnover ratio, using the inventory on hand at December 31 as the beginning inventory. (Do not round intermediate. calculations. Round your answer to 1 decimal place.) Inventory turnover ratio times 3-b. The supplier reported that the typical inventory turnover ratio was 7.9. How does NGS's ratio compare? This implies that it is taking Nicole a slightly amount of time to sell her inventory than her supplier claims is typical.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...
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