Exam 16: Inventory

The cost of goods sold for Home Depot last year amounted to $3,530,800 and the average inventory at cost was $1,574,182. The published inventory turnover at cost is 5.2. Calculate the inventory turnover at cost, and if it is less than the published rate, calculate the target average inventory at cost. (Round your answer to the nearest dollar)

The average inventory at retail for Modern Age Furniture was $1,389,008. The turnover rate at retail was 2.6, based on net sales of $3,611,420. The published inventory turnover at retail is 5.3. Since the actual turnover rate is less than the published rate, calculate the target average inventory at retail. (Round your answer to the nearest dollar)

The net sales for Casual Fashions, Inc. last year amounted to $1,126,800 and the average inventory at retail was $212,604. The published inventory turnover at retail is 6. Calculate the inventory turnover at retail, and if it is less than the published rate, calculate the target average inventory at retail. (Round your answer to the nearest dollar)

During the past year, a plumbing supply house sold 503 faucets. Inventory records for the year are as follows: Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

The following is the inventory for the year for Brown Lumber: Date Units Cost per unit Total Cost Beginning inventory, Jan. 1 500 \ 10 \ 5,000 Purchase, March 15 2,500 \ 11 27,500 Purchase, September 20 1,500 \ 13 19,500 Purchase, December 10 500 \ 14 7,000 Total Units Available 5,000 \ 59,000 Using the average cost pricing method, Brown Lumber determined that the dollar value of the ending inventory was $7,316. How many actual units of plywood are included in this ending inventory? (Round the average cost per unit to the nearest cent)

Quality-Value, Inc. maintains a gross margin of 75% on all of its merchandise. In September the company had a beginning inventory of $604,900, net purchases of $186,900, and net sales of $487,600. Use the gross profit method to estimate the cost of ending inventory as of September 30.

Doc's Discount November 1 − November 30 Cost Retail Beginning Inventory, November 1 \ 40,000 \ 64,000 Purchases \ 245,000 \ 392,000 Net Sales \3 80,000 Using the retail method, estimate the value of the ending inventory at cost on November 30. (Round the cost ratio to the nearest tenth of a percent)

Lucent Technology maintains a gross margin of 40% on all of its merchandise. In April the company had a beginning inventory of $518,700, net purchases of $312,400, and net sales of $750,400. Use the gross profit method to estimate the cost of ending inventory as of March 31.

Cost of goods sold for Century Merchandise Mart was $874,510 for the year. If the beginning inventory at cost was $561,900 and the ending inventory at cost was $302,300, find the inventory turnover at cost. (Round your answer to the nearest tenth)

Use the lower-of-cost-or-market rule to determine the value of the following inventory for Instant Key's. ITEM QTY COST MKT BASIS AMOUNT Door Keys 154 \ 554 \ 598 Car Keys 133 164 210 Bike Keys 257 510 620 Safe Keys 491 279 240 Total value in Inventory is:

During the past year, Franklin Industries sold 562 calculators. Inventory records for the year are as follows: Using the FIFO method of inventory pricing, calculate the dollar value of the ending inventory.

On June 13, Hagen Products sustained a warehouse fire in which all of the merchandise was destroyed. Company records indicate that at the time of the fire the net sales to date were $2,438,500. Hagen had a beginning inventory of $658,300 and net purchases were $1,562,850. They have maintained a gross margin of 35% on sales over the past three years. Use the gross margin method to estimate the inventory loss for the insurance claim.

Cost of goods sold for Abe Distributors was $538,330 for the year. If the beginning inventory at cost was $112,700 and the ending inventory at cost was $301,400, find the inventory turnover at cost. (Round your answer to the nearest tenth)

Grand Department Store July 1 − July 31 Cost Retal Beginning Inventory, July \ 205,850 \ 292,800 Purchases \ 448,600 \ 640,400 $\text { Net Sales}$ $\quad$ $\quad$ $\quad$$\quad$$\quad$ $ 786,200 A)What is the cost ratio for Grand Department Store? (Round to the nearest whole percent) B)What is the estimated value of the ending inventory at retail?

The inventory valuation method which assumes that the items purchased last are the first items to be sold is called the ____________________ method.

Kidz Korner had net sales of $3,001,680 for the year. If the beginning inventory at retail was $241,700 and the ending inventory at retail was $592,100, find the inventory turnover at retail. (Round your answer to the nearest tenth)

The inventory system in which merchandise is physically counted at least once a year to determine the value of the goods available for sale is called a(n) ____________________ inventory system.

The Novelty Shop had sales of $510,000 over the last year. The beginning inventory at retail was $209,000 and the ending inventory at retail was ​$179,000. ​ The average inventory at retail is $194,000.

When inventory turnover is below average for a firm its size, it may be a signal that the company is carrying too ____________________ inventory.

​When the market price or current replacement price of an inventory item declines below the actual price paid for the item, a company is permitted to use the lower-of-cost-or-market rule.