Early in 2014, Defoor Company switched to a just-in-time inventory system. Its sales and inventory amounts for

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Early in 2014, Defoor Company switched to a just-in-time inventory system. Its sales and inventory amounts for 2013 and 2014 are shown below.

Determine the inventory turnover and days in inventory for 2013 and 2014. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the twoyears.

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Accounting Tools for Business Decision Making

ISBN: 978-1118128169

5th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Apr 07, 2014 11:31 AM

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Early in 2014, Defoor Company switched to a just-in-time inventory system. Its sales and inventory amounts for

Question:

2013 2014 Sales revenue Cost of goods sold Beginning inventory Ending inventory $3,120,000 $3,713,000 1,425,000 210,000 90,000 1,200,000 170,000 210,000

Step by Step Answer:

2013 2014 Inventory 1200000 63 1425000 95 turnover ...View the full answer

Accounting Tools for Business Decision Making

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