Current Attempt in Progress

The following information is available for Ivanhoe's Activewear Inc. for three recent fiscal years.

		2025		2024		2023
Inventory		$542,000		$574,000		$326,000
Net sales		1,860,000		1,750,000		1,320,000
Cost of goods sold		1,116,000		945,000		950,000

(a) Calculate the inventory turnover, days in inventory, and gross profit rate for 2025 and 2024. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.)

		2025			2024
Inventory turnover		enter a number of times rounded to 1 decimal place	times		enter a number of times rounded to 1 decimal place	times
Days in inventory		enter a number of days rounded to 0 decimal places	days		enter a number of days rounded to 0 decimal places	days
Gross profit rate		enter percentages rounded to 1 decimal place	%		enter percentages rounded to 1 decimal place	%

Current Attempt in Progress

Ivanhoe Distribution markets CDs of numerous performing artists. At the beginning of March, Ivanhoe had in beginning inventory 2,700 CDs with a unit cost of $7.00. During March, Ivanhoe made the following purchases of CDs.

March 5		1,900		@		$8.00		March 21		5,000		@		$10.00
March 13		3,500		@		$9.00		March 26		1,900		@		$11.00

During March 12,000 units were sold. Ivanhoe uses a periodic inventory system.

(a)

Determine the cost of goods available for sale.

Cost of goods available for sale

$enter the cost of goods available for sale in dollars

Calculate weighted-average cost per unit. (Round answer to 3 decimal places, e.g. 5.125.)

Weighted-average cost per unit

$enter the average cost in dollars rounded to 3 decimal places

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(b)

Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		AVERAGE-COST
Ending inventory		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Cost of goods sold		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount

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(c)

Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?

(1)		select a method Average-costFIFOLIFO produces the highest inventory amount.
(2)		select a method Average-costFIFOLIFO produces the highest cost of goods sold.