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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.QUESTION 1a. Kpogo Ltd has the following products in inventory at the end of 2019:Units Cost per unit GH¢XYZ (completed) 540 22ABC (part complete) 280 26Each product normally sells at GH¢34 per unit. Due to the difficult trading conditions, Kpogo Ltdintends to offer a discount of 15% per unit and expects to incur GH¢4 per unit in selling costs.GH¢10 per unit is expected to be incurred to complete each unit of ABC.Required:In accordance with IAS 2 Inventories, at what amount should inventory be stated in the financialstatements of Kpogo Ltd as at 31 December 2019?b. According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors,an entity must select and apply its accounting policies consistently from one period to thenext and among various items in the financial statements. However, an entity may changeits accounting policies under certain conditions.Required:Identify the circumstances under which it may be appropriate to change accounting policyin accordance with…Part 1Canine Nutritionists is a manufacturer of grains for dogs. The following information pertains to operations duringthe 2021 calendar year.Inventory Data: 1/1/2021 Purchases 31/12/2021Raw Materials $750,000 $4,330,000 $807,000Indirect Materials 55,000 320,000 71,500Work in Progress 924,000 n/a 814,750Finished Goods 1,142,600 n/a 1,720,200The following additional information is also available:Sales Revenue $14,776,000Direct Factory Labor 4,371,000Indirect Factory Labor 1,232,250Total Depreciation 1 400,000Total Utilities 2 525,000Distribution & Customer Service Costs 76,800Insurance on Plant & Equipment 585,000Property Taxes 3 90,000Administrative Wages & Salaries 1,076,000Advertising Expenses 57,700Sales Commission 5% of Sales Revenue1 Of the total depreciation, 80% relates to factory plant & equipment and 20% relates to general andadministrative costs.2 Of the total utilities, 75% relates to manufacturing and 25% relates to general and administrative costs.3 The…
- Case 2:Muscat Tubes Manufacturing LLC are the manufacturer of picture tubes for T.V. The following are the details of their operation during 2019. Rate of consumption per week is 200 units for Muscat Tubes Manufacturing LLC. Company estimated inventory carrying cost at 20% per annum. The ordering cost per order is RO 100. The cost incurred for purchasing a tube is RO 500. The rate of consumption per week is 100 to 300 units and lead time to supply is 6 to 8 weeks. During emergency purchase the lead time is 2 weeks.Calculate the following: a. Reorder levelb. Maximum level of stockc. Minimum level of stockd. Average level of stocke. Danger LevelQuestion 4Syarikat Layang uses the LIFO (Last-in, First-out) costing method for its perpetualinventory system. It had inventory on 1 January 2021 consisting of 400 articles boughtat RM4 each. The purchases during the month of January consisted of 800 at RM4.20each purchased on 8 January, and 2,000 at RM3.80 each on 18 January. It sold 2,400at RM5.00 each on 28 January. 40 of those sold were returned in perfect condition on31 January. The returned goods were bought on 18 January.Required: a. i. Calculate, by means of an inventory account the number and cost of the articles held in inventory during January 2021. ii. The unit price and total cost of the inventory. b. Show the trading account for the month ended 31 January 2021.Question 2 A) Haly Ltd, a Limited Liability Company, maintains inventory on Average Cost (AVCO) bases. On 1 January 2020, it had opening inventory of 300 units at OMR 10 per unit. The following transactions in respect of Material ‘abc’ occurred during the month of January 2020. Month Purchase (Units) Price per unit (OMR) Issued (Units) 2 January 2020 1200 12 3 January 2020 500 10 January 2020 900 13 15 January 2020 1200 20 January 2020 600 14 29 January 2020 800 A) Using Average Cost (AVCO) Method, you are required to calculate: 1) Cost of inventory as on 31 January 2020 2) Cost of goods sold during the month of January 2020. Show all the workings clearly. Molly Ltd produced goods in batches. On 1 January 2020 it had Opening WIP of 7,500 units, 80% completed. Also, Molly Ltd started and completed 18,000 units in the month of January 2020. By the end of January…
- Assignment: Kind Gestures Company is a leading producer of Akohia Soap in the Eastern Region of Ghana. The following information relate to a component part used in manufacturing Akohia Soap for the period ended 31st August, 2020. Units Total Cost (GH¢)Stock on hand at January 1, 2020 2,000 100,000 Purchases made during the period;January 4,000 200,000March 3,000 180,000May…47. Vincenzo Cassano Company sells one product, which it purchases from various suppliers. The trial balance at December 31, 2020, included the following accounts: Sales (100,000 units at P150) P15,000,000 Sales discount 1,000,000 Purchases 9,300,000 Purchase discount 400,000 Freight in 100,000 Freight out 200,000 The inventory purchases during 2020 were as follows: Units Unit cost Total cost Beginning inventory, January 1 20,000 P60 P 1,200,000 Purchases, quarter ended March 31 30,000 65 1,950,000 Purchases, quarter ended June 30 40,000 70 2,800,000 Purchases, quarter ended Sept. 30 50,000 75 3,750,000 Purchases, quarter ended Dec. 31 10,000 80 800,000 150,000 P10,500,000 Vincenzo Cassano’s accounting policy is to report inventory in its financial statements at the lower of cost or market, applied to total inventory. Cost is determined under the first-in, first-out method. Vincenzo Cassano has determined that, at December 31, 2020, the replacement cost of its inventory…Question 3The League Company uses the LIFO (Last-in, First-out) costing method for its perpetual inventory system. It had inventory on 1st January 2021 consisting of 400 articles bought at RM4 each. The purchases during the month of January consisted of 800 at RM4.20 each purchased on 8 January, and 2,000 at RM3.80 each on 18 January. It sold 2,400 at RM5.00 each on 28 January. 40 of those sold were returned in perfect condition on 31 January. The returned goods were bought on 18 January. Required:a. i. Calculate, by means of an inventory account the number and cost of the articles held in inventory during January 2021. ii. The unit price and total cost of the inventory. b. Show the trading account for the month ended 31 January 2021.
- 1. Jorasmi Enterprise Trial Balance as at 31 December 2020 Particulars Debit RM Credit RM Inventory of raw materials 1 Jan 2020 21,000 Inventory of finished goods 1 Jan 2020 38,900 Work in progress 1 Jan 2020 13,500 Wages (direct RM180,000, factory indirect RM145,000) 325,000 Royalties 7,000 Carriage inwards (on raw materials) 3,500 Purchases of raw materials 370,000 Productive machinery (cost RM280,000) 230,000 Administration computers (cost RM20,000) 12,000 General factory expenses 31,000 Lighting 7,500 Factory power 13,700 Administration salaries 44,000 Sales representative salaries 30,000 Commission on sales 11,500 Rent 12,000 Insurance 4,200 General administration expenses 13,400 Bank charges 2,300 Discount allowed 4,800 Carriage outwards 5,900 Sales…1. On 9/20/22, Manhattan Trading shipped goods costing $200,000 to Queens Appliances Storeon consignment. The sales agreement states that Queens Appliances Store has 60 days to either sellthe goods or pay Manhattan Trading $300,000 for them or return the goods. Manhattan Trading usesthe perpetual inventory system.RequiredA. Original shipment of the goods to Queens Appliances store.B. Expiration of the 60-day period without the goods being returned by QueensAppliances Store.Required information Skip to question [The following information applies to the questions displayed below.]Shadee Corp. expects to sell 650 sun visors in May and 420 in June. Each visor sells for $17. Shadee’s beginning and ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods inventory for June will be 55 units. Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 27 closures on hand on May 1, 21 closures on May 31, and 23 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,500 per month, and variable manufacturing overhead is $1.25 per unit produced.Required:1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.) 2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate…