Compute inventory turnover for each company

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Reference no: EM133098650

Question 1 - The cost of goods sold computations for Carla Vista Company and Metlock Company are shown below.

 

Carla Vista Company

Metlock Company

Beginning inventory

$41,000

$74,000

Cost of goods purchased

290,900

605,300

Cost of goods available for sale

331,900

679,300

Ending inventory

91,000

88,000

Cost of goods sold

$240,900

$591,300

Required -

(a1) Compute inventory turnover for each company.

(a2) Compute days in inventory for each company.

Question 2 - Wildhorse Company reported the following information for November and December 2022.

 

November

December

Cost of goods purchased

$538,000

$603,000

Inventory, beginning-of-month

126,000

171,000

Inventory, end-of-month

171,000

?

Sales revenue

850,000

1,000,000

Wildhorse's ending inventory at December 31 was destroyed in a fire.

Required - Compute the gross profit rate for November.

Reference no: EM133098650

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