pastexamqs for inventory

pastexamqs for inventory - Winter 08 Final Exam Oka Inc is...

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Winter 08 Final Exam Oka Inc. is a retail company. In the notes to its financial statements, the company states that the cost of merchandise is determined according to the first-in first-out (FIFO) method. Assume that Oka Inc. uses the periodic inventory system. The following information relates to the company’s merchandise inventory for 2007: Transactions Number of Units Unit cost Sales price Beginning inventory 600 $30 Purchase, February 2 900 32 Sale, April 15 1,000 $102 Purchase, August 18 1,500 34 Sale, October 21 1,200 103 Operating expenses for 2007 totalled $42,000, excluding income tax expense. Oka is subject to an income tax rate of 30 percent. Required: 1. Compute the cost of goods sold, the gross profit, and the net income for year 2007 (an income statement is not required). (6 marks) 2. Compute the inventory turnover ratio and the average period to sell inventory during 2007, and briefly explain what these amounts mean. (4 marks) 3. Compute the cost of ending inventory using the weighted-average cost method. (3 marks)
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pastexamqs for inventory - Winter 08 Final Exam Oka Inc is...

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