Chapter 5: 12QS (page 261)
Refer to the information in QS 5-10 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round per unit costs and inventory amounts to cents.)
Ending Inventory totals$360.
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Refer to the information in QS 5-4 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO. (Round per unit costs and inventory amounts to cents.)
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 15 units for \(20 each.
Purchased on December 7 | 10 units @ \)6 |
Purchased on December 14 | 20 units @ \(12 |
Purchased on December 21 | 15 units @ \)14 |
Required
Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method. (Round per unit costs and inventory amounts to cents.)
Refer to the information in QS 5-10 and assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. (Round per unit costs and inventory amounts to cents.)
Question: BTN 5-2 Comparative figures for Apple and Microsoft follow
| \( million | Apple | Microsoft | ||||
| Current year | One year Prior | Two years prior | Current year | One year Prior | Two years prior | |
Inventory | \)2,349 | \(2,111 | \)1,764 | \(2,902 | \)2,660 | $1,938 |
Cost of Sales | 140,089 | 112,258 | 106,606 | 33,038 | 27,078 | 20,385 |
Required
1. Compute inventory turnover for each company for the most recent two years shown.
BTN 5-7 Review the chapter’s opening feature highlighting Brad Gillis and Ben Friedman and their company, Homegrown Sustainable Sandwich Shop. Assume that Homegrown consistently maintains an inventory level of \(30,000, meaning that its average and ending inventory levels are the same. Also assume its annual cost of sales is \)120,000. To cut costs, Brad and Ben propose to slash inventory to a constant level of $15,000 with no impact on cost of sales. They plan to work with suppliers to get quicker deliveries and to order smaller quantities more often.
Required
Evaluate and comment on the merits of their proposal given your analysis for part 1. Identify any concerns you might have about the proposal.
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