Answer:
The correct answer is B. $1,800.00
Explanation:
LIFO Perpetual table is attached.
The table shows purchases, sales and balance of each period.
As the final inventory is 120 units, we suppose the sales of the year. Applying LIFO, our ending inventory cost is 120 units, each one at $15
So, total cost is $1800 (120* 15)
The four-firm ratio is the concentration ratio between the total sales accumulated by the four largest industrial firms to the total sales of all firms present in an industry. This translates to the mathematical expression of
four-firm ratio = (total sales of four largest firms / total sales)
Since, we are given that all 10 firms have the same sales, we let the sales be equal to x.
total sales of four largest firms = 4x
total sales = 10x
The ratio is then,
four-firm ratio = 4/10
Converting this to percentage will yield us an answer of 40%.
Answer:
Sheffield Company
Inventory Turnover Ratio = Cost of goods sold/Average Inventory
= $1,145,400/$138,000
= 8.3 times
Explanation:
a) Data and Calculations:
Beginning inventory = $145,000
Ending inventory = $131,000
Average inventory = (Beginning inventory + Ending inventory)/2
= ($145,000 + 131,000)/2
= $138,000
Sales revenue = $1,972,800
Cost of goods sold = $1,145,400
Net income = $248,400
b) The inventory turnover ratio for Sheffield Company is an efficiency ratio that shows how inventory is managed and the number of times Sheffield sells or consumes the inventory during an accounting period. This is why Sheffield Company takes the average of the inventories in order to smoothen seasonal fluctuations in the inventory level during the year. When this ratio divides the number of days in the accounting period, Sheffield will get the days it takes for inventory to be purchased or produced, and then sold or consumed.
