Some analysts calculate the inventory turnover ratio by dividing sales, rather than cost of goods sold, by the average inventory. Which of the following regarding the inventory turnover ratio is/are not true?
a. Using sales in the numerator, will lead to incorrect measures of the inventory turnover ratio for calculating the average number of days that inventory is on hand until sale.
b. As long as the ratio of selling price to cost of goods sold remains relatively constant, either measure will identify changes in the trend of the inventory turnover ratio.
c. Using sales in the numerator, will lead to correct measures of the inventory turnover ratio for calculating the average number of days that inventory is on hand until sale.
d. Choices a and b.
e. None of the above.
C
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A company uses the periodic inventory system, and the following information is available. All purchases and sales are on credit. The selling price for the merchandise is $11 per unit.??UnitsUnit CostTotal Cost6/01Inventory Balance30$3$906/06Purchase7042806/11Purchase4552256/16Purchase506300?Goods available195?$8956/12Sale100??6/20Sale60???Goods sold160??6/31Inventory Balance35??Required:Determine the cost of the ending inventory and the cost of goods sold for June using the LIFO method.
What will be an ideal response?
Lagle Corporation has provided the following information: Cost per Unit Cost per PeriodDirect materials$4.85 Direct labor$3.35 Variable manufacturing overhead$1.35 Fixed manufacturing overhead $8,000Sales commissions$1.50 Variable administrative expense$0.45 Fixed selling and administrative expense $4,400 If 5,000 units are sold, the total variable cost is closest to:
A. $73,000 B. $57,500 C. $57,750 D. $47,750
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a. True b. False Indicate whether the statement is true or false
How much can Van include on his return as qualified medical expenses before limitation?
Van pays the following medical expenses this year: • $1,500 for doctor bills for Van's son who is claimed as a dependent by Van's former spouse. • $300 for Van's eyeglasses. • $900 for Van's dental work. • $3,800 for Van's face lift. Van, a newscaster, is worried about the wrinkles around his eyes. A) $1,200 B) $2,400 C) $2,700 D) $6,500