Question

1. Giorgio had cost of goods sold of $9,529 million, ending inventory of $2,197 million, and average inventory of $2,073 million. Its inventory turnover equals:

2. Bedrock Company reported a December 31 ending inventory balance of $416,000. The following additional information is also available:

• The ending inventory balance of $416,000 included $72,800 of consigned inventory for which Bedrock was the consignor.
• The ending inventory balance of $416,000 included $23,600 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.

Based on this information, the correct balance for ending inventory on December 31 is

3. A company had beginning inventory of 12 units at a cost of $18 each on March 1. On March 2, it purchased 12 units at $30 each. On March 6 it purchased 7 units at $23 each. On March 8, it sold 28 units for $66 each. Using the FIFO perpetual inventory method, what was the cost of the 28 units sold?

4. A company’s normal selling price for its product is $23 per unit. However, due to market competition, the selling price has fallen to $18 per unit. This company's current inventory consists of 170 units purchased at $19 per unit. Replacement cost has fallen to $16 per unit. Calculate the value of this company's inventory at the lower of cost or market.

5. Spencer Co. has a $260 petty cash fund. At the end of the first month the accumulated receipts represent $49 for delivery expenses, $151 for merchandise inventory, and $18 for miscellaneous expenses. The fund has a balance of $42. The journal entry to record the reimbursement of the account includes a:

Answer 1

Q1.
Cost of goods sold			9529
Divide: Average inventory			2073
Inventory turnover			4.6
Q2.
Ending inventory				416000
Less: Supplies stock to be considered separately				23600
Ending inventory (correct)				392400
Q3.
Cost of goods sold on mar 08:
Beginning inventory (12 units @18)				216
Mar 02 Purchases (12 units @ 30)				360
Mar 06 Purchases (4 units @ 23)				92
Cost of goods sold on mar 08:				668
Q4.
Net realizable value			18
or Replacement cost			16
Market value per unit			18	(higher of above two)
Or cost price			19
Inventory value			18	(lower of cost or market value)
Number of units			170
Ending inventory			3060
Q5.
Reimbursemnt entry:
Delivery expenses			49
Merchandise inventory			151
Misc expenses			18
Cash account				218