134. On the basis of the following data for Barker Industries as of December 31, 2010, determine the value of the inventory at the lower of cost or market. Also, show how the merchandise inventory would appear on the balance sheet (assume that the cost was determined by the FIFO method).
Commodity
Inventory Quantity
Unit Cost Price
Unit Market Price
Size 4
9
$17
$19
Size 5
10
17
Size 6
14
23
20
Size 7
12
15
Inventory valuation = $701
135. During August, the first month of the fiscal year, sales totaled $875,000 and the cost of merchandise available for sale totaled $700,000. Estimate the cost of the merchandise inventory as of August 31, based on an estimated gross profit rate of 45%.
136. Based on the following information: compute (a) Inventory turnover; (b) Average daily cost of merchandise sold; and (c) Number of days' sales in inventory. Use a 365-day year. (d) If an inventory turnover of 12 is average for the industry, how is this company doing?
Item
12/31/09 Amount
12/31/10 Amount
Cost of merchandise sold
$172,900
$160,600
Inventory
18,000
12,000
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