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Nina [5.8K]
3 years ago
14

Turnbull Department Store had net credit sales of $18,000,000 and cost of goods sold of $15,000,000 for the year. The average in

ventory for the year amounted to $2,500,000. Inventory turnover for the year is
a.365 days.
b.48.7 days
c.46 days
d.30 days
Business
2 answers:
frez [133]3 years ago
5 0

Answer:

Inventory turnover period = 60.8 days

Explanation:

<em>The inventory turnover period also known as the inventory days is the average length of time it takes  business to sell its stocks and replace same. The shorter the better as it indicates a high patronage from  customers.</em>

It is calculated as follows:

Inventory turnover = (Average inventory / cost of goods ) × 365 days

                              = (2,500,000/15,000,000)× 365 days

                              = 60.83 days

ladessa [460]3 years ago
3 0

Answer:

The correct answer is 60.8 days

Explanation:

The formula for computing inventory rate is given as (Cost of Goods Sold/Average Inventory)

average inventory is $2,500,000

cost of goods sold is $15,000,000

inventory turnover  rate=($15,000,000/$2,500,000)

                                =6

Inventory turnover ratio=365/inventory turnover rate

inventory turnover ration=365/6

                                         =60.8 days

None of the options is correct

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Explanation:

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Ayayai Corporation is authorized to issue 46,000 shares of $5 par value common stock. During 2020, Ayayai took part in the follo
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Question:

Ayayai Corporation is authorized to issue 46,000 shares of $5 par value common stock. During 2020, Ayayai took part in the following selected transactions.

1. Issued 5,000 shares of stock at $49 per share, less costs related to the issuance of the stock totaling $5,400.

2. Issued 1,200 shares of stock for land appraised at $46,000. The stock was actively traded on a national stock exchange at approximately $50 per share on the date of issuance.

3. Purchased 480 shares of treasury stock at $44 per share. The treasury shares purchased were issued in 2016 at $41 per share.

(a) Prepare the journal entry to record item 1.

(b) Prepare the journal entry to record item 2.

(c) Prepare the journal entry to record item 3 using the cost method.

Answer:

a.

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Common Stock = $25,000

Paid in Capital = $214,000

b.

Land: = $60,000

Common Stock: = $6,000

Paid in Capital = $54,000

c.

Treasury Stock: $21,120

Cash: $21,500

Explanation:

a.

Cash

Cash is calculated as: 5,000 shares * $49 market price/share – $5,400 of issue costs]

Cash = $239,600

Common Stock

Common Stock is calculated as: 5,000 shares * $5 par value/share

Common Stock = $25,000

Paid-in Capital in Excess of Par - Common Stock

This is calculated by: Cash - Common Stock = $239,000 - $25,000

Paid in Capital = $214,000

b.

Land:

Land is calculated as 1,200 shares * $50 market price/share = $60,000

Common Stock:

Common Stock is calculated as: 1,200 shares * $5 par value/share = $6,000

Paid-in Capital in Excess of Par - Common Stock

This is calculated by: Land - Common Stock = $60,000 - $6,000

Paid in Capital = $54,000

c. Treasury Stock is calculated as:

480 stocks * $44 cost per share

= $21,120

Cash: $21,500

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2 years ago
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