Verba Corporation has an inventory turnover of 15 times per year, while the industry average is 4.0 times per year. What does this indicate about Verba’s inventory turnover?a. Verba may have obsolete inventory on hand.b. Verba may not be keeping enough inventory on hand, which could lead to lost sales.c. Verba has too much inventory on hand.d. Verba is experiencing difficulties in selling the inventory.

Q: Data on Shin Inc. for 2008 are shown below, along with the inventory conversion period (ICP) of the…

A: Every business wants to decrease its inventory conversion period so that their business turn into…

Q: You are making a detailed analysis of the financial statements and accounting records of two…

A: Different companies value their inventories differently depending on the type of inventory,…

Q: Lynch, Inc., is a hardware store operating in Boulder, Colorado. Management recently made some poor…

A: Statement of financial affairs:

Q: . What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2…

A: Inventory Turnover: Inventory turnover refers to the number of times a firm is able to replace its…

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Cost of goods sold (LIFO) = 8000 units purchased for $40 per unit + 1500 units from beginning…

Q: Wilma Company experienced a P500,000 decline in the market value of inventory at the end of the…

A: ANSWER The correct option is d.) first quarter 0 , Second quarter 0 EXPLANATION Interim periods are…

Q: 7. Charles Inc. has an ending inventory of $423,425, and the cost of goods sold for the year just…

A: Solution:- Inventory Turnover ratio computes the pace at which the inventory is being used.

Q: Sizemo Elektroniks sells semiconductors that are used in games and small toys. The company has been…

A: 1. First of all, we need to know what is lower of cost or market value.  This is the method of…

Q: A recent annual report of Gateway $2000 , Inc. , shows : cost of goods sold. $4,072; inventory at…

A: Operating cycle is the number of days required to receive Inventory, sale of Inventory and…

Q: Hunter, Inc. uses the LIFO method of inventory costing and is facing the possibility of a LIFO…

A: Concept : It occurs when a company using LIFO inventory valuation method sells more goods old stock…

Q: Allison Co. has a beginning inventory costing $90,000 and an ending inventory costing $120,000.…

A: Inventory Turnover Ratio = (Cost of merchandise Sold / Average Inventory)

Q: 1. Assume the company does not expect to replace the units of beginning inventory sold; it plans to…

A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…

Q: C Ltd is a company in the chemical industry, situated near the Eden Lake.  Its year end is 30th June…

A: C Ltd is a company in the chemical industry, situated near the Eden Lake.  Its year end is 30th June…

Q: Jollibee has just ended the calendar year making a sale in the amount of P200,000 of merchandise…

A: Credit sales is P200,000. Cost of purchase is P150,500. Profit = Sales - Cost Profit = P200,000 -…

Q: Scruffy Brothers Supply does a physical inventory count when the business is closed at the end of…

A: Adjusting entries are made when the accounts are closed and after closing the account, any…

Q: Bobaflex Corporation has ending inventory of $527,156 and cost of goods sold for the year just ended…

A: Given information: Cost of goods sold for the year is $8,543,132 Ending inventory is amounted to…

Q: The cost of goods sold for Veltron International last year amounted to $547,800, and the average…

A: The question is related to Ratio Analysis. Inventory turnover is calculated with the help of…

Q: Seizemo Elektroniks sells semiconductors that are used in games and small toys. The company has been…

A: Evaluation is the final step of the formal decision process Evaluating outcomes may help the…

Q: Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is…

A: Average age of inventory = 25 days  Inventory level = P8,500

Q: Adams Corporation estimates that it lost $75,000 in inventory from a recent flood. The following…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Fulmer company has an inventory turnover ratio of 6. Their Annual CoGS are $750,000. If I were to…

A: Given the following information: Inventory turnover ratio: 6 Cost of goods sold: $750,000

Q: Who benefits from this decision? Who is harmed by this decision? Are Jay and Tina acting in an…

A:

Q: HCorporation buys and sells personal computers. The company began operations in 2010 and reported…

A: Inventory is to be valued at cost or realization value whichever is lower.

Q: On January 1, Veltron International has inventory worth $599,900 at cost. At the end of the year,…

A: Inventory turnover: Inventory turnover is the quantitative tool that tells the number of times a…

Q: Parker Company had $5,000,000 in sales and reported a $300,000 loss in its annual report to…

A: Break even point is the number of sales where all the Expenses variable and fixed get covered and no…

Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…

A: Particulars No. of units Rate per unit Total cost 9,500 units sold 8,000 $40 $320,000…

Q: Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A:

Q: Vibrant Company had $950,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: The gross profit is calculated as difference between sales and cost of goods sold. Cost of goods…

Q: Your company sells $469,300 of goods during the year that have a cost of $398.600. Inventory was…

A: Inventory turnover ratio is a form of efficiency ratio, which shows how many times inventory is…

Q: The King Corporation has ending inventory of $386,735, and cost of goods sold for the year just…

A: Calculate the inventory turnover as follows:

Q: EFG Co. has 600 units in inventory that had been purchased for $22 each and that would currently…

A: Solution: Cost per unit of inventory = $22 Market price = $28.50 per unit According to accounting…

Q: Endor Company begins the year with $90,000 of goods in inventory. At year-end, the amount in…

A: Inventory Turnover Choose Numerator:     /  Choose Denominator:    = Inventory Turnover Cost of…

Q: Another way to look at the concept of inventory turnover is by measuring sales per square foot.…

A: Cost allocation can be done based on the activities a department is performing. The costs can be…

Q: Shortly after the end of the fiscal year, the company performs a physical count of the inventory.…

A: Inventory is the term used for goods available for sales, raw material used to produce finished good…

Q: Sizemo Elektroniks sells semiconductors that are used in games and small toys. The company has been…

A: First of all, we need to know what is lower of cost or market value. This is the method of inventory…

Q: Suppose Mako's managers believe the annual inventory turnover can be raised to 8 times without…

A: Cash flow cycle refers to the overall process a business entity takes to convert its cash outflows…

Q: Another way to look at the concept of inventory turnover is by measuring sales per square foot.…

A: working note: 224.328*3,500 =78,51,48 249.458*2,600= 6,48,590 68.593*2,300=1,57,763 56.58*500…

Q: Traylor Corporation began the year with three items in beginning inventory, each costing $5. During…

A: Particulars Units Price per unit Total value Beginning inventory 3 $5 $15 Purchases 5 $6 $30…

Q: Another way to look at the concept of inventory turnover is by measuring sales per square foot.…

A: Annual sales = Inventory turnover * average inventory Annual sales per sq. foot = Annual…

Q: Prisha has not kept accurate accounting records during the financial year. She had opening…

A: We have the following information: Opening Inventory: $6,700 Purchases: $84,000 Ending Inventory:…

Q: Another way to look at the concept of inventory turnover is by measuring sales per square foot.…

A: Annual sales is the total sales in a year.  Annual department sales is the total sales in a year by…

Q: Sizemo Elektroniks sells semiconductors that are used in games and small toys. The company has been…

A: Lower-of-cost-or-market value: The lower-of-cost-or-market value is a method which requires the…

Q: AAA Hardware uses the LIFO method to value its inventory. Inventory at the beginning of the year…

A: FIFO: Under this inventory method, the units that are purchased first, are sold first. Thus, it…

Q: Evaluate the decision not to apply the lower-of-cost-or-market method in the current quarter.  Who…

A: The lower-of-cost or market method is a process of inventory valuation of a Company. This is…

Q: The Board of Directors decides that old inventory costing €18,000 is to be written off as the…

A: As per international financial reporting standards  Inventory is to be measured at cost or net…

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.