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Inventory records for Marvin company revealed following:
Date Transaction # of units unit cost
Feb. 2 Beginning Inventory 980 $7.15
Feb. 10 purchase 500 7.57
Feb 16 Purchase 720 8.04
Feb 23 Purchase 540 8.44
Problem 1: Marvin sold 1,840 units of inventory during the month. Cost of goods sold assuming FIFO would be:
Problem 2: A company's sales equal $60,000 and cost of goods sold equals $20,000. Its beginning inventory was $1,600 and its ending inventory is $2,400. The company's inventory turnover ratio equals:
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