Question

Problem 4 (Chapter 6)

At December 31, 2020, the following information was available for the Bugalow Company: ending inventory $40,000, beginning inventory $56,000, cost of goods sold $270,000, sales revenue $380,000. Calculate inventory turnover and days in inventory for Bugalow Company.

Problem 5 (Chapter 6)

The Simmons Company sells three categories of tools (small, medium, and large). The cost and net realizable value of its inventory of tools are listed below. Determine the value of the company’s inventory under the lower-of-cost or-net realizable value (LCNRV).

                                                                                                  Lower-of-Cost-or-Net

                                       Cost   _             Net Realizable Value        Realizable Value   _

            Small              $   64,000                   $   73,000                 $

            Medium             290,000                      260,000

            Large                 152,000                      171,000

                                                                 

                                                                   Total Inventory     $

Problem 6 (Chapter 5)

Assume Stieger Company has the following reported amounts: Sales revenue $400,000, Sales discounts $10,000, Cost of goods sold $234,000, and Operating expenses $60,000. In the space below, compute the following: (a) net sales; (b) gross profit; (c) income from operations; and (d) profit rate. (Round to one decimal place.)

            a.

            b.

            c.

            d.

Answer 1