1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sedbober [7]
3 years ago
12

Cost of goods sold $500,000 Average inventory 62,500 Determine (a) the inventory turnover and (b) the number of days' sales in i

nventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover b. Number of days' sales in inventory days
Business
1 answer:
nadya68 [22]3 years ago
8 0

Answer:

(a) 8 times

(b) 45.6 days

Explanation:

Given that,

Cost of goods sold = $500,000

Average inventory = $62,500

Assume 365 days a year.

(a) Inventory turnover ratio:

= Cost of goods sold ÷ Average inventory

= $500,000 ÷ $62,500

= 8 times

(b) Number of days' sales in inventory days:

= 365 days ÷ Inventory turnover ratio

= 365 days ÷ 8

= 45.6 days

You might be interested in
Do all choices have costs?
expeople1 [14]
For every choice you make, you are sacrificing something else. For example, when you choose to buy a new phone, you are sacrificing buying a new laptop. The opportunity cost of buying the phone, is the cost of the laptop. Therefore, evey choice has a cost, because in every choice, there is a sacrifice
5 0
3 years ago
Monty loaned his friend Ned $24,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remain
Airida [17]

Answer:

Short term capital loss and $10,800

Explanation:

Remaining balance - Capital gains

$18,000 - $7,200 = $10,800

Monty can report the bad debt of $18,000 as short term capital loss since it is expense for the business and receivables are not recoverable. This amount can be reported as loss of the business.

5 0
2 years ago
Exercise 5-8 Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Units-Weighted-Average Method [LO5-2, LO5-3, LO5-4]
S_A_V [24]

Answer:

1. Calculate the first production department's equivalent units of production for materials and conversion for May.

  • materials = 275,000 + 50,000 = 325,000
  • conversion = 275,000 + 12,500 = 287,500

2. Compute the first production department's cost per equivalent unit for materials and conversion for May.

  • materials = $169,000 / 325,000 = $0.52
  • conversion = $253,000 / 287,500 = $0.88

3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.

  • materials = 50,000 x $0.52 = $26,000
  • conversion = 12,500 x $0.88 = $11,000
  • total = $37,000

4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.

  • materials = 275,000 x $0.52 = $143,000
  • conversion = 275,000 x $0.88 = $242,000
  • total = $385,000

Explanation:

Beginning WIP 70,000 units

materials $56,100

conversion $16,400

Ending WIP 50,000 units

100% completed for materials (50,000 EU)

25% completed for conversion (12,500 EU)

units started 255,000

total units transferred out 275,000

materials cost added during the period = $112,900

conversion cost added during the period = $236,600

7 0
3 years ago
Are specialized accountants who look for evidence of improper
oksian1 [2.3K]

Answer:

A. Forensic accountants

Explanation:

Forensic accountants possess auditing and investigative skills. Their work entails examining financial records and statements in search of evidence for any financial misleading. Forensic accountants are trained and qualified accountants or auditors. They acquire investigative skills through specialized training.

5 0
2 years ago
The Auto Group has 1,000 bonds outstanding that are selling for $980 each. The company also has 9,700 shares of preferred stock
DochEvi [55]

Answer:

The first thing that we need to do in this question is find the total capital of the Group. They get their capital from three sources which are bonds, preferred stock and common stock. We need to find the capital provided by each of these 3 sources and add them up. After that we will see what ratio of capital is provided by preferred stock, and this ratio will be the weight of preferred stock as it related to the firms weighted average cost of capital.

Bonds

1000*980=980,000

Preferred stock = 9700*85= 824,500

Common stock= 43,000*80= 3,440,000

980,000+824,500+3,440,000= 5,244,500

Preferred weight = 824,500/5,244,500= 0.157 = 15.7%

The weight of preferred stock is 15.7%

Explanation:

4 0
3 years ago
Other questions:
  • In the relationship depicted by the curve Productivity1, which of the following statements are true regarding the relationship b
    6·1 answer
  • When inspecting a fire extinguisher:
    5·1 answer
  • A company's gross profit (or gross margin) was $129,650 and its net sales were $502,900. Its gross margin ratio is
    11·1 answer
  • The ____ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organizati
    10·1 answer
  • "Have you considered paying workers for what they produce? I found that when I paid employees by the piece, their productivity w
    13·1 answer
  • All of the following statements regarding retained earnings are true exceptA. retained earnings represents a claim on cash.B. a
    14·1 answer
  • Doris recently started her position at Monro Company. The company uses the dollar-value LIFO inventory method. On her first day
    11·1 answer
  • Security X has an expected rate of return of 13% and a beta of 1.15. The risk-free rate is 5%, and the market expected rate of r
    7·1 answer
  • It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. The current long-term debt
    9·2 answers
  • g The Ricardian equivalence states that if the government cuts taxes without changing current or future expenditure then: a) hou
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!