Which of the following is false? Select one: a. Day's sales in inventory is equal to the average number of days it takes to sell inventory b. Higher Day's sales in inventory means that inventory is less likely to become obsolete because it is sold in fewer days c. Inventory ratio is equal to the number of times inventory was completely purchased and sold (turn over) during the period d. Inventory turnover ratio is calculated by dividing COGS by the average value of inventory over the period

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: * Answer 4,6 and 8 is only asked   Inventory turnover ratio = Cost of Goods Sold/ Average Inventory…

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: In a period of rising prices, the inventory method which tends to give the highest reported…

A: During a period of rising prices FIFO Method is expected to give highest reported inventory as in…

Q: I know that the number of days sales In inventory is the average inventory divided by the avg daily…

A: Inventory value is calculated as the total cost of your inventory at the end of each accounting…

Q: Days in inventory is found by Group of answer choices dividing inventory by cost of goods sold per…

A: The day in inventory is a financial ratio that indicates the average time in days that a company…

Q: A company reports the following: Cost of goods sold $335,070 Average inventory 74,460 Determine (a)…

A: Inventory turnover ratio means the number of times a company turns its inventory into sales. The…

Q: Identify that if prices are rising, which inventory cost flow method will produce the highest amount…

A: solution Identify that if prices are rising, which inventory cost flow method will produce the…

Q: Which of the following statements are true? Multiple Cholce none of the statements are true The…

A: The 2 statement is not true, as higher the number of days sales in receivable indicates that the…

Q: Inventory Turnover Ratio shows the speed at which the Sales will be converted into cash. Select one:…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: Which of the following variations of the retail inventory method would generally result in the…

A: Rising prices basically means the situation where the prices of inventory keep on rising with each…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: A ratio that provides information regarding the number of times a company sold or replaced its…

Q: A manufacturer reported an inventory turnover ratio of 8.6 last year. During the current year,…

A:

Q: Indicate the most likely effect of the following changes in inventory management on the…

A: Inventory turnover represents the amount of times an organisation sells and substitutes the…

Q: e ratio was always lower. Which of the following statements would be the best interpretation for the…

A: Inventory turnover ratio establishes the relationship between the cost of goods sold and the average…

Q: 8- Which of the following is the formula to compute inventory turnover? 50% a) The formula is cost…

A: Inventory turnover ratio is a efficiency ratio which measures how efficiently inventory is managed.…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: Gross Margin of a Merchandise Business will be calculated by using which of the following formula?…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Which of the following statements is correct?

A: Cost of Goods Sold: It refers to the cost of production of the goods sold by the company. Such…

Q: A company reports the following:   Cost of goods sold $3,960,250   Average inventory 255,500 Round…

A: Inventory Turnover = Cost of goods sold/ Average Inventory Number of days sales in Inventory =…

Q: a. Based on Table 1, compute the company's supply chain performance in terms of inventory turnover…

A: The answer is stated below:

Q: Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: In a period of rising prices,a. cost of goods sold under LIFO will be less than under FIFO.b. gross…

A:

Q: Which of the following is false?          Question 33 options:   a)  Inventory turnover ratio is…

A: solution: "Higher days' sales in inventory means that inventory is less likely to become obsolete…

Q: Based on the following information compute (a) inventory turnover, (b) average daily cost of…

A: Inventory turnover ratio refers to number of times inventory is sold or used in a given period.

Q: the ending inventory of a firm is overstated by $49,000, by how much and in what direction…

A: Solution Concept Mathematically Cost of goods sold       =beginning inventory + purchase – ending…

Q: The cost of goods sold for Veltron International last year amounted to $534,600, and the average…

A: The inventory turnover ratio can be calculated by dividing the cost of goods sold by average…

Q: 11 - Which of the following is the formula to compute inventory turnover? a) The formula is cost of…

A: The inventory turnover ratio measures how efficiently inventory is managed in the organization…

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: 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: Which of the following is false? Select one: a. Days’ sales in inventory is equal to the average…

A: Option “B” is False.

Q: If beginning inventory is understated by $15,000, the effect of this error in the current period is…

A: Inventory error cab effect both Balance Sheet and Income Statement.

Q: You are the manager of a successful retail operation.  Inflation has been running at 3% per year on…

A: In accounting there are different methods that we can use for accounting of inventory. The main…

Q: Which of the following statements is correct? Group of answer choices A)When cost of goods sold as a…

A: Cost of goods sold is the total costs that is used to create a product or service, which has been…

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: a. Why is a high inventory turnover considered to be a positive indicator?b. Is it possible to have…

A: a.Inventory turnover shows the company’s ability to sell its inventory, it is shown in terms of…

Q: Merchandise inventory at the end of the year is overstated. Which of the following statements…

A: Merchandise inventory at the end of the year is the closing stock which is reported in the balance…

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: If the ending inventory of a firm is overstated by $56,000, by how much and in what direction…

A: The answer is as fallows

Q: Bulldogs Inc. has recently calculated the inventory turnover for the currently year to be 30. In…

A: Inventory turnover measures how many times in a given period a company is able to replace the…

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: hat is the ratio that measures the number of days on average the company takes to turn its inventory…

A: Solution: Days inventory outstatnding represents the average number of days the inventory takes to…

Q: Assume that the ending inventory of a merchandising firm is overstated by $40,000. a. By how much…

A: The cost of goods sold formula is calculated by adding purchases for the period to the beginning…

Q: Is it possible to have a high inventory turnover and a high number of days’ sales in inventory? Why?

A: Inventory Turnover is calculated to measure the level of inventory hold by the firm compared to…

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.