What was the company Days Outstanding in Inventory

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Q1. Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:

Date

Activity

Quantity

Unit Price

5/1

Beginning Inventory

140

$10

5/5

Purchase

200

$12

5/15

Purchase

260

$14

5/25

Purchase

260

$16

Sales were 430 units at $20. Using the FIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Q2. Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:

Date

Activity

Quantity

Unit Price

5/1

Beginning Inventory

125

$10

5/5

Purchase

225

$12

5/15

Purchase

250

$14

5/25

Purchase

200

$16

Sales were 580 units at $20. Using the LIFO method, determine the dollar value of Cost of Goods Sold for the month of May.

Q3. Easton Company had average inventory for the year of $640,000 and an inventory turnover ratio of 8.8. What was the company's Days Outstanding in Inventory. Assume a 365 day year. Round to one decimal place.

Reference no: EM132646622

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