Question

1.Periodic Inventory by Three Methods; Cost of Merchandise Sold

The units of an item available for sale during the year were as follows:

Jan. 1	Inventory	40 units @ $98
Mar. 10	Purchase	70 units @ $106
Aug. 30	Purchase	30 units @ $110
Dec. 12	Purchase	60 units @ $116

There are 80 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost and the cost of merchandise sold by three methods. Round interim calculations to one decimal and final answers to the nearest whole dollar.

Cost of Merchandise Inventory and Cost of Merchandise Sold
Inventory Method	Merchandise Inventory	Merchandise Sold
First-in, first-out (FIFO)	$	$
Last-in, first-out (LIFO)
Weighted average cost

2.Inventory Turnover and Days' Sales in Inventory

The following financial statement data for years ending December 31 for Holland Company are shown below.

	20Y4				20Y3
Cost of merchandise sold	$1,489,200				$945,934
Inventories:
Beginning of year	359,160				251,120
End of year	516,840				359,160

a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.

	Inventory Turnover
20Y4
20Y3

b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place.

	Days' Sales in Inventory
20Y4	days
20Y3	days

Answer 1

Answer to the above question is shown.