Minitest 6 Answer Key

Minitest 6 Answer Key - $828 10 b Inventory Turnover = Cost...

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Bus 230A Minitest 6 Answer Key 1 a 2 c 3 a 4 a 5 b 6 d 7 c Beginning Balance (100x$9.00)  $900  May 06 Purchase (40x$9.25)  370  May 20 Purchase (20x$9.40)  188    Total Cost of Inventory Available  $1,458  Total Cost / Total Units = $1,458 / 160 =  $9.11  Units sold (30+60) x90   Cost of Units Sold  $820.13  8 b First 30 Units Sold x $9.00 =  $270  Second 60 Units Sold x $9.00 =  540    Total FIFO Cost of Goods Sold  $810  9 d First 60 Units Sold:   Layer Purchased May 20 20 Units x $9.40 =  $188    Layer Purchased May 6 40 Units x $9.25 =  370  Second 30 Units Sold:   Layer From Beg. Inventory 30 Units x $9.00 =  270      Total LIFO Cost of Goods Sold
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Unformatted text preview: $828 10 b Inventory Turnover = Cost of Goods Sold / Average Inventory Note: Average Inventory = (Beg. Inv. + End Inv.) / 2 $8,191 / (($1,902+$2,464)/2) = 4 times 11 a Beginning Inventory $32,000 Purchases 58,000 Cost of Goods Available 90,000 Less Cost of Goods Sold (81,600) Ending Inventory $8,400 The calculation of Cost of Goods Sold is based on a gross margin of 32%. If the gross margin is 32% of sales, then the cost of goods sold is 100%-32%=68%. Sales $120,000 Cost of Goods Sold Percentage x68% Cost of Good Sold $81,600...
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