Early in 2012, Aragon Company switched to a just-in-time inventory system. Its sales and inventory amounts for

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Early in 2012, Aragon Company switched to a just-in-time inventory system. Its sales and inventory amounts for 2011 and 2012 are shown below.

Determine the inventory turnover and days in inventory for 2011 and 2012. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the two years.

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Financial Accounting Tools for business decision making

ISBN: 978-0470534779

6th Edition

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

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Question Posted: Sep 22, 2011 11:04 AM

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Early in 2012, Aragon Company switched to a just-in-time inventory system. Its sales and inventory amounts for

Question:

2012 $3,713,000 1,425,000 2011 Sales revenue $3,120,000 Cost of goods sold Beginning inventory 170,000 210,000 210,000 90,000 Ending inventory

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2011 2012 Inventory 1200000 63 1425000 95 turnover ...View the full answer

Financial Accounting Tools for business decision making

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