Below is presented a table of data for cost of goods sold and ending inventory for...
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Below is presented a table of data for cost of goods sold and ending inventory for the first six months of 2011 for EBCO, Inc. DEC JAN FEB MAR APR MAY JNE Cost of goods sold Ending inventory_ 100 150 225 200 125 90 40 50 62 62 42 28 Assume that each month has 30 days. a. Calculate the number of days of cost of goods sold held in inventory for March, April, May, and June assuming quarterly cost of goods sold is used to calculate average daily cost of goods sold. b. Discuss your findings in part a. What is happening with the firm's investment in inventory? c. Below is a purchasing schedule and a schedule showing the dollar amount of those pur- chases remaining as an inventory balance for successive months. Calculate a balance fraction matrix and discuss what it shows about the firm's management of its inventory balance. 字 ENDING INVENTORY BALANCES FEB PURCHASES MAR APR MAY JNE Feb 160 31 15 Mar 237 47 23 Apr May 200 39 19 105 23 11 Jne End of Month Inventory 76 17 NA 62 62 42 28 Below is presented a table of data for cost of goods sold and ending inventory for the first six months of 2011 for EBCO, Inc. DEC JAN FEB MAR APR MAY JNE Cost of goods sold Ending inventory_ 100 150 225 200 125 90 40 50 62 62 42 28 Assume that each month has 30 days. a. Calculate the number of days of cost of goods sold held in inventory for March, April, May, and June assuming quarterly cost of goods sold is used to calculate average daily cost of goods sold. b. Discuss your findings in part a. What is happening with the firm's investment in inventory? c. Below is a purchasing schedule and a schedule showing the dollar amount of those pur- chases remaining as an inventory balance for successive months. Calculate a balance fraction matrix and discuss what it shows about the firm's management of its inventory balance. 字 ENDING INVENTORY BALANCES FEB PURCHASES MAR APR MAY JNE Feb 160 31 15 Mar 237 47 23 Apr May 200 39 19 105 23 11 Jne End of Month Inventory 76 17 NA 62 62 42 28
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a Jan Feb Mar April May June Cost of Good Sold 10000 15000 22500 20000 12500 9000 Ending Inventory 4... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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