Inventory Management Paper 15

When perpetual inventory is maintained, the cost of goods sold is recorded by a journal entry in which a credit is made to the

Which journal entry is an indication that a perpetual inventory system is being used?

Work-Days Clothing had beginning merchandise inventory of $45,000. It made purchases of $80,000 and recorded sales of $130,000 during November. Its estimated gross profit on sales was 25%. On November 30, the store was destroyed by fire. The merchandise inventory loss was

Beginning inventory totals $100,000 and ending inventory totals $140,000. Net sales totals $400,000 and cost of goods sold is $300,000. The merchandise turnover ratio will be

Beginning inventory totals $100,000 and ending inventory totals $140,000. Net sales totals $800,000 and cost of goods sold is $600,000. The days’ sales in inventory will be (to the nearest hundredth).

Howard’s Supply Co. suffered a fire loss on April 20, 2011. The company’s last physical inventory was taken on January 30, 2011, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000 and purchases during that time were $450,000. Howard’s consistently reports a 30% gross profit. The estimated inventory loss is:

Coastal Shores Inc. (CSI) was completely destroyed by Hurricane Fred on August 5, 2011. At January 1, CSI reported an inventory of $170,000. Sales from January 1, 2011, to August 5, 2011, totaled $480,000 and purchases totaled $195,000 during that time. CSI consistently marks up its products 60% over cost to arrive at a selling price. The estimated inventory loss due to Hurricane Fred would be:

When computing the cost-to-retail percentage for the conventional retail method, included in the denominator are:

Included in the computation of the cost-to-retail percentage for the LIFO retail method are:

In calculating the cost-to-retail percentage for the retail method, the retail column will not include: