Question

Please answer all the questions

1. XYZ Company bought the following amounts of widgets in 20xx:

January 1 Beginning Inventory 1450 widgets @ $1.23     $1,783.50

January 4    Purchase                1800 widgets @ $1.27     $2,286

March 15     Purchase                 2500 widgets @ $1.19    $2,975

May 16        Purchase                 1500 widgets @ $1.34    $2,010

July 3           Purchase                 1900 widgets @ $1.22    $2,318

August 31    Purchase                  1350 widgets @ $1.25   $1,687.50

November 5 Purchase                  3500 widgets @ $1.15   $4,025

Total                                              14,000                            $17,085

XYZ Company sold 9800 widgets during the year. Calculate the ending inventory value using the LIFO method.

Group of answer choices

$5,200

$4,900

$5,125.50

$5,300

2. XYZ Company bought the following amounts of widgets in 20xx:

January 1 Beginning Inventory 1450 widgets @ $1.23     $1,783.50

January 4    Purchase                1800 widgets @ $1.27     $2,286

March 15     Purchase                 2500 widgets @ $1.19    $2,975

May 16        Purchase                 1500 widgets @ $1.34    $2,010

July 3           Purchase                 1900 widgets @ $1.22    $2,318

August 31    Purchase                  1350 widgets @ $1.25   $1,687.50

November 5 Purchase                  3500 widgets @ $1.15   $4,025

Total                                              14,000                            $17,085

XYZ Company sold 9800 widgets during the year. Calculate the ending inventory using the average cost method.

Group of answer choices

$5,125.50

$5,400

$5,200

$4900

3. Bed Bath and Beyond had net sales of $254,400 for the year. The beginning inventory at retail was $73,500, and the ending inventory at retail was $53,300.

What was the average inventory at retail?

Group of answer choices

$73,500

$53,000

$63,400

$126,800

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Question 85 pts

Bed Bath and Beyond had net sales of $254,400 for the year. The beginning inventory at retail was $73,500, and the ending inventory at retail was $53,300.

What was the inventory turnover rounded to the nearest tenth?

Group of answer choices

3.5 times

5.0 times

4.0 times

3.0 times

4. Lush Boutique had net sales of $420,500 for the year. The beginning inventory at retail was $86,000, and the ending inventory at retail was $68,000. What was the average inventory at retail?

Group of answer choices

$68,000

$81,000

$77,000

$86,000

Answer 1

Answer 1

Purchase	Sales	Ending Inventories
Date of Purchase	Units	Per unit Cost	Total Cost	Units	Per unit Cost	Total Cost	Units	Per unit Cost	Total Cost
Jan-01	1450	1.23	1783.5				1450	1.23	1783.5
Jan-04	1800	1.27	2286				1800	1.27	2286
Mar-15	2500	1.19	2975	1550	1.19	1844.5	950	1.19	1130.5
May-16	1500	1.34	2010	1500	1.34	2010
Jul-03	1900	1.22	2318	1900	1.22	2318
Aug-31	1350	1.25	1687.5	1350	1.25	1687.5
Nov-05	3500	1.15	4025	3500	1.15	4025
	14000		17085	9800		11885	4200		5200

5200 is the correct anaswer

Answer 2

Purchase	Sales	Ending Inventories
Date of Purchase	Units	Per unit Cost	Total Cost	Units	Per unit Cost	Total Cost	Units	Per unit Cost	Total Cost
Jan-01	1450	1.23	1783.5	1450	1.220	1769.518
Jan-04	1800	1.27	2286	1800	1.220	2196.643
Mar-15	2500	1.19	2975	2500	1.220	3050.893
May-16	1500	1.34	2010	1500	1.220	1830.536
Jul-03	1900	1.22	2318	1900	1.220	2318.679
Aug-31	1350	1.25	1687.5	650	1.220	793.2321	700	1.220	854.25
Nov-05	3500	1.15	4025				3500	1.220	4271.25
	14000	1.220	17085	9800		11959.5	4200		5125.5

5125.5 is the correct answer.

Answer 3

Average inventory=(Beg. Inventory + End. Inventory)/2
=	(73500+53300)/2
=	63400
Option C is the correct answer

Answer 4

Inventory Turnover=Net Sales/Average inventory
=	254400/63400
=	4.0	times

Answer 5

Average inventory=(Beg. Inventory + End. Inventory)/2
=	(86000+68000)/2
=	77000