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Chasea_6615_ch9 - prevents over or undervaluing inventory...

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Andrew Chase Intermediate Accounting Chapter 9 P&G’s 2004 inventory turnover ratio: $25,076,000,000 % 4,400,000,000 = 5.7 times, and for 2003: $22,141,000,000 % 3,640,000,000 = 6.08 times 9-5 Case: 1. $14.30 2. $17.60 3. $13.74 4. $9.70 5. $15.90 9-15 The conventional retail inventory methods are similar to the lower-of-cost-or-market method because the lower-of-cost-or-market method uses a ceiling and a floor that
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Unformatted text preview: prevents over or undervaluing inventory. This in turn balances out the mark up and mark down prices and results in similar yields. BE9-1 (a) Ceiling ($217-19) = $198 Floor ($217-19-32) = $166 (b) $106 (c) $51 BE9-2 Jokers: $1,900 Penguins: $4,950 Riddlers: $4,400 Scarecrows: $3,070 BE9-9 Inventory turnover: $198,747 % ($26,612 + 24,401 % 2) = 7.79 times Average days to sell inventory: 365 % 7.79 = 47 days...
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