81. Jordan Precision Welding had sales of $134,000 for the month of June. The company's gross profit was $36,000. The company had beginning inventory of $70,000, and a physical inventory count indicated that ending inventory was $66,000. What was the company's average number of days in inventory for June closest to?
A. 177 days
B. 246 days
C. 253 days
D. 266 days
82. Jordan Precision Welding had sales of $134,000 for the month of June. The company's gross profit was $36,000. The company had beginning inventory of $70,000, and a physical inventory count indicated that ending inventory was $66,000. What was the company's inventory turnover ratio for June closest too?
A. 0.53
B. 1.44
C. 1.48
D. 1.97
83. A decrease in the inventory turnover ratio for a company from one year to the next could indicate all of the following except?
A. That inventory is obsolete.
B. That there is a falling demand for the inventory.
C. That the company has more money tied up in inventory.
D. That the company has been growing rapidly and expanding sales.
84. Frontenac Corporation has just developed a new on-line ordering system with their primary supplier. They expect the new system to reduce their average number of days of inventory on hand from 42 days to 22 days. If their cost of goods sold was $642,000 last year and is expected to be about the same this year, how much smaller should their investment in inventory be this year?
A. $15,285
B. $32,100
C. $35,178
D. $38,695
85. Lion's is a furniture manufacturer. They sell to retail stores but also have a showroom at the plant where customers can buy directly from them. For each of the following items, indicate whether it would be classified as "supplies," "raw materials," "work-in-process," "finished goods" or "other." For any item you classified as "other," indicate how they would be accounted for.
A) Bolts of upholstery on hand for covering the furniture.
B) Upholstery fabric samples available for customers in the showroom.
C) Desks displayed in the showroom for sale.
D) Desks in the showroom that the sales staff use when making sales.
E) Nails and screws on hand in the manufacturing facility.
F) Stain on hand for staining the furniture
G) Furniture that has been assembled and is waiting to be stained
H) Furniture that has been shipped to a retail store customer. The customer arranged for and is paying for the shipping.