The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute inventory turnover for each company. (Round answers to 2 decimal places, e.g. 15.25.) Novak CompanyFlounder CompanBeginning inventory$ 45,000$71,000Cost of goods purchased199,000295,500Cost of goods available for sale244,000366,500Ending inventory55,50071,500Cost of goods sold$188,500$295,000

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The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute inventory turnover for each company. (Round answers to 2 decimal places, e.g. 15.25.)

Financial Accounting Intro Concepts Meth/Uses

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ISBN:9781285595047

Author:Weil

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Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 7E

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Question

The cost of goods sold computations for Novak Company and Flounder Company are shown below. Compute inventory turnover for each company. (Round answers to 2 decimal places, e.g. 15.25.)

Novak Company
Flounder Compan
Beginning inventory
$ 45,000
$71,000
Cost of goods purchased
199,000
295,500
Cost of goods available for sale
244,000
366,500
Ending inventory
55,500
71,500
Cost of goods sold
$188,500
$295,000

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Lower-of-cost-or-market inventory Data on the physical inventory of Katus Products Co. as of December 31 follows: Description Inventory Quantity Market Value per Unit (Net Realizable Value) A54 37 56 C77 24 178 F66 30 132 H83 21 545 K12 375 5 Q58 90 18 S36 8 235 V97 140 20 Y88 17 744 Quantity and cost data from the last purchases invoice of the year and the next-to-the-last purchases invoice are summarized as follows: Description Last Purchases Invoice Next-to-the-Last Purchases Invoice Quantity Purchased Unit Cost Quantity Purchased Unit Cost A54 30 60 40 58 C77 25 174 15 180 F66 20 130 15 128 H83 6 547 15 540 K12 500 6 500 7 Q58 75 25 80 26 S36 5 256 4 260 V97 100 17 115 16 Y88 10 750 8 740 Instructions Determine the inventory at cost and also at the lower of cost or market, using the first-in, first-out method. Record the appropriate unit costs on the inventory sheet, and complete the pricing of the inventory. When there are two different unit costs applicable to an item, proceed as follows: 1. Draw a line through the quantity, and insert the quantity and unit cost of the last purchase. 2. On the following line, insert the quantity and unit cost of the next-to-the-last purchase. 3. Total the cost and market columns and insert the lower of the two totals in the LCM column. The first item on the inventory sheet has been completed as an example. Inventory Sheet December 31 Description Unit Inventory Quantity Cost per Unit Market Value per Unit(Net Realizable Value) Total Cost Market LCM A54 37 30 60 56 1,800 1,680 7 58 56 406 392 2,206 2,072 2,072
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