Carrington Inc. began the year with $130,000 in merchandise inventory and ended the year with $190,000...

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Carrington Inc. began the year with $130,000 in merchandise inventory and ended the year with $190,000 Sales and cost of goods sold for the year were $900,000 and $640,000, respectively (Use a 360 day year in your calculations.) a. Compute Carrington's inventory turnover ratio b. Compute the number of days sales in inventory. The following data is available for one of the products sold by LearningTree,Inc., which uses the perpetual inventory system: Mayl On hand, 1,000 units at $2.00 each 5 Purchased 2,000 units at $2.75 each 10 Sold2,500unitsat $16each 18 Purchased 2,000 units at $4.00 each 24 Sold1,500unitsat $12each 31 On hand ,1,000 units a. $2,000 5,500 8,000 If the moving average method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10? b. If the moving average method is used, what is the amount assigned to the ending inventory on May 30? C. If the LIFO method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10 ? f. d. If the LIFO method is used, what is the amount assigned to the ending inventory on May 30? e. Explain why the amounts for ending inventory are different under the two average cost methods - weighted average (periodic) and moving average (perpetual ). Explain why the amounts are different for LIFO under periodic and perpetual inventory systems. Carrington Inc. began the year with $130,000 in merchandise inventory and ended the year with $190,000 Sales and cost of goods sold for the year were $900,000 and $640,000, respectively (Use a 360 day year in your calculations.) a. Compute Carrington's inventory turnover ratio b. Compute the number of days sales in inventory. The following data is available for one of the products sold by LearningTree,Inc., which uses the perpetual inventory system: Mayl On hand, 1,000 units at $2.00 each 5 Purchased 2,000 units at $2.75 each 10 Sold2,500unitsat $16each 18 Purchased 2,000 units at $4.00 each 24 Sold1,500unitsat $12each 31 On hand ,1,000 units a. $2,000 5,500 8,000 If the moving average method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10? b. If the moving average method is used, what is the amount assigned to the ending inventory on May 30? C. If the LIFO method is used, what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10 ? f. d. If the LIFO method is used, what is the amount assigned to the ending inventory on May 30? e. Explain why the amounts for ending inventory are different under the two average cost methods - weighted average (periodic) and moving average (perpetual ). Explain why the amounts are different for LIFO under periodic and perpetual inventory systems.

Answer rating: 100% (QA)

a Compute Carringtons inventory turnover ratio The inventory turnover ratio measures the number of times a companys inventory is sold and replaced during a given period To calculate the inventory turn... View the full answer