Reference no: EM133118901
Question 1 - This information is available for Groneman Inc. for 2021 and 2022.
|
(in millions)
|
2021
|
2022
|
|
Beginning inventory
|
$2,290
|
$2,522
|
|
Ending inventory
|
2,522
|
2,618
|
|
Cost of goods sold
|
24,351
|
23,099
|
|
Sales
|
43,251
|
43,232
|
Required - Calculate the inventory turnover, days in inventory, and gross profit rate for Groneman Inc. for 2021 and 2022. Comment on any trends.
Question 2 - Match the items below by entering the appropriate code letter in the space provided.
?A. ?Merchandise Inventory?F.?First-in, first-out (FIFO) method
?B.? Work in process?G.?Last-in, first-out (LIFO) method
?C.? FOB shipping point?H.?Average-cost method
?D. ?FOB destination?I.?LIFO reserve
?E.? Specific identification method?J.?Inventory turnover ratio
??1. ?The difference between inventory reported using LIFO and inventory using FIFO.
??2. ?Tracks the actual physical flow for each inventory item available for sale.
??3. ?Goods that are only partially completed in a manufacturing company.
??4.? Cost of goods sold consists of the most recent inventory purchases.
??5.? Goods ready for sale to customers by retailers and wholesalers.
??6.?Title to the goods transfers when the public carrier accepts the goods from the ???seller.
??7. ?Ending inventory valuation consists of the most recent inventory purchases.
??8.? The same unit cost is used to value ending inventory and cost of goods sold.
??9. ?Title to goods transfers when the goods are delivered to the buyer.
??10. ?Measures the number of times the inventory sold during the period.
Question 3 - The following data exists for Mather Company.
|
|
?2022?
|
2021
|
|
Accounts Receivable
|
?$80,000
|
?$70,000
|
|
Net Sales
|
? 560,000?
|
410,000
|
Required - Calculate the accounts receivable turnover and the average collection period in days for 2022.