Question 12 BEExpert-verified
Use the information for Boyne Inc. from BE9-10. Compute ending inventory at cost using the LIFO retail method.
The ending inventory at cost equals $30,033.60.
Inventory value at retail is calculated as follows:
Add: Net Purchases
Add: Net Markups
Less: Net Markdowns
Total (Excluding beginning inventory)
Total (Including beginning inventory)
Ending inventory at retail
The cost-to-retail ratio of beginning inventory is calculated as follows:
The cost-to-retail ratio of total excluding beginning inventory is calculated as follows:
Ending inventory at retail equals $46,000, which includes $20,000 of beginning inventory and the remaining $26,000 from next purchases.
The ending inventory at cost is calculated as follows:
Ending Inventory at Retail
Layers at Retail Prices
Cost to Retail Ratio
Ending Inventory at LIFO Cost
Thus, ending inventory at cost equals $30,033.60.
Presented below is information related to Aaron Rodgers Corporation for the current year. Beginning inventory $ 600,000 Purchases 1,500,000 Total goods available for sale $2,100,000 Sales revenue 2,500,000 Instructions Compute the ending inventory, assuming that (a) gross profit is 45% of sales, (b) gross profit is 60% of cost, (c) gross profit is 35% of sales, and (d) gross profit is 25% of cost.
The financial statements of ConAgra Foods, Inc.’s 2014 annual report disclose the following information. (in millions) 2014 2013 2012 Year-end inventories $2,201 $2,077 $2,341 Fiscal Year 2014 2013 Net sales $17,703 $15,427 Cost of goods sold 13,980 11,864 Net income 315 786Instructions Compute ConAgra’s (a) inventory turnover and (b) the average days to sell inventory for 2014 and 2013.
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