1. Ralston Corp.’s cost of sales has remained steady over the last two years. During this same time period, however, its inventory has increased considerably. What does this information tell you about...

1. Ralston Corp.’s cost of sales has remained steady over the last two years. During this same time period, however, its inventory has increased considerably. What does this information tell you about the company’s inventory turnover? Explain your answer.

2. Why is the weighted average cost method called a moving average when a company uses a perpetual inventory system? (Appendix)