chap 7 - FIFO 68000 units at 11 748,000 80,000 units at 12...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
P1. 130 Cabinets at 56 dollars 7280 225 cabinets at 62 13950 350 cabinets at 65 22750 700 cabinets at 70 49000 300 cabinets at 66 19800 400 at 68 27200 250 at 72 18000 Total amount 157980 2355 cabinets 157980 Average Cost is 65.57 for 2200 cabinets, so 144,257 would be the estimated income. FIFO Method 130 cabinets at 56 dollars 7280 225 cabinets at 62 13950 350 cabinets at 65 22750 700 cabinets at 70 49000 300 cabinets at 66 19800 400 cabinets at 68 27200 95 cabinets at 72 6840 Total cabinets sold 2200 total price 146,820 LIFO 250 at 72 18000 400 at 68 27200 300 at 66 19800
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
700 at 70 49000 350 at 65 22750 200 at 62 12400 Total 149150 3.Inventory turnover is 149150/2355 63.33 5.76= days on hand This company gets rid of their inventory very fast. P6. 68000 units at 11 $748,000 80,000 units at 12 960,000 160,000 at 12.40 1,984,000 120,000 at 12.60 1,512,000 200,000 at 12.80 2,560,000 160,000 at 12.60 2,016,000 60,000 at 13.00 780,000 COGS 10,560,000 Total sales were 786,000 units at 20.00 Average 12.34= average price multiplied by 786000-expenses Total Income=4599485.71
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: FIFO 68000 units at 11 748,000 80,000 units at 12 960,000 160,000 at 12.40 1,984,000 120,000 at 12.60 1,512,000 200,000 at 12.80 2,560,000 158,000 at 12.60 1,990,800 9754800-expenses=4652800 LIFO 80,000 units at 12 960,000 160,000 at 12.40 1,984,000 120,000 at 12.60 1,512,000 200,000 at 12.80 2,560,000 160,000 at 12.60 2,016,000 60,000 at 13.00 780,000 6,000 units at 11 66,000 Total 9878000-expenses Total Income=4776000 Inventory Turnover=5.63 Average days on hand=65 Conclusion- This company is doing fairly well C8. walgreens COGS 30413/4844.7 Inventory turnover is 6.27 On hand 58 days CVS 37006.2 /5586.85 Inventory turnover is 6.62 Inventory on hand 55 days CVS has improved its performance over the last two years, the advantage it gets it that it can turnover its inventory faster than the other can. CVS appears to make the best use of its inventory out of both companies but it is close....
View Full Document

Page1 / 5

chap 7 - FIFO 68000 units at 11 748,000 80,000 units at 12...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online