112. Consider the following inventory data:
Beginning inventory$150,000
Ending inventory 100,000
Purchases 310,000
What is the average days in inventory for the year?
a. 126.7 days.
b. 101.4 days.
c. 152.0 days.
d. 111.7 days.
113. The following balances come from the financial statements of Way Industries:
Sales revenue
|
$850,000
|
Accounts receivable
|
$280,000
|
Beginning inventory
|
$50,000
|
Ending inventory
|
$30,000
|
Net purchases
|
$460,000
|
Sales returns
|
$50,000
|
Sales discount
|
$20,000
|
Given this information, what is the company’s inventory turnover ratio?
a.
|
21.25.
|
b.
|
28.33.
|
c.
|
16.0.
|
d.
|
9.6.
|
e.
|
12.0.
|
114. Company A is identical to Company B in every regard except that Company A uses FIFO and Company B uses LIFO. In an extended period of rising inventory costs, Company A's gross profit and inventory turnover, compared to Company B's, would be:
|
Gross profit
|
Inventory turnover
|
a.
|
Lower
|
Lower
|
b.
|
Higher
|
Higher
|
c.
|
Higher
|
Lower
|
d.
|
Lower
|
Higher
|
115. Nu Company reported the following data for its first year of operations:
Net sales
|
$2,800
|
Cost of goods sold
|
1,680
|
Operating expenses
|
880
|
Ending inventories
|
820
|
What is Nu's gross profit ratio?
a. 80%.
b. 49%.
c. 40%.
d. 5%.
116. Anthony Corporation reported the following amounts for the year:
Net sales$296,000
Cost of goods sold 138,000
Average inventory 50,000
Anthony’s inventory turnover ratio is:
a. 2.42.
b. 2.76.
c. 3.21.
d. 2.14.
117. Anthony Corporation reported the following amounts for the year:
Net sales$296,000
Cost of goods sold 138,000
Average inventory 50,000
Anthony’s average days in inventory is:
a. 170 days.
b. 114 days.
c. 132 days.
d. 151 days.
118. Anthony Corporation reported the following amounts for the year:
Net sales$296,000
Cost of goods sold 138,000
Average inventory 50,000
Anthony’s gross profit ratio is:
a. 53.4%.
b. 51.9%.
c. 50.3%.
d. 46.6%.
119. In a periodic inventory system, the purchase of inventory is debited to:
a. Purchases.
b. Cost of goods sold.
c. Inventory.
d. Accounts payable.
120. Northwest Fur Co. started the year with $94,000 of merchandise inventory on hand. During the year, $400,000 in merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Northwest paid freight-in charges of $7,500. Merchandise with an invoice amount of $5,000 was returned for credit. Cost of goods sold for the year was $380,000. What is ending inventory?
a. $112,490.
b. $112,550.
c. $116,500.
d. $120,300.
121. The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be:
a. FIFO.
b. LIFO.
c. Weighted average.
d. Each method always produces a different amount.