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.