Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter C, Problem 11QS
To determine
Concept introduction:
Days’ sales in work in process inventory:
Days’ sales in work in process inventory is a measurement of efficiency. This shows the number of days for which inventory is hold by the company. In other words we can say that it shows relationship between work in process inventory and cost of goods sold.
Days’ sales in work in process inventory.
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Students have asked these similar questions
Lakeshore Manufacturing provided the following information for the month ended March 31:
Sales Revenue
$31,000
Beginning Finished Goods Inventory
7,000
Ending Finished Goods Inventory
8,500
Cost of Goods Manufactured
11,600
Compute gross profit.
OA. $19,400
OB. $17,900
OC. $10,900
O D. $20,900
***
A company reports ending work in process inventory of $770 and cost of goods sold of $23,404. Compute days’ sales in work in process inventory. Round the answer to the nearest whole day.
Selected information regarding a company's most recent quarter follows (all data in thousands).
Beginning work in process inventory
Cost of goods manufactured
Direct materials used
Direct labor
Ending work in process inventory
What was manufacturing overhead for the quarter?
OA. $180
B. $500
C. $150
D. $780
$280
$650
$220
$120
$150
Chapter C Solutions
Managerial Accounting
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