5

Carson Company has an inventory turnover of 12.75, and its inventory amounts to $2,400,000. What is the amount of cost of goods sold?

$30,600,000

Misty Mountain Outfitters is a merchandiser of specialized fly fishing gear. Its cost of goods sold for 2016 was $295,000, and sales were $690,000. The amount of merchandise on hand was $50,000, and total assets amounted to $585,000. Using this information, which of the following answers correctly states the average days in inventory ratio? Round to the nearest day.

62 days

Which of the following businesses is most likely to use a specific identification cost flow method?

Car dealership

Blake Company purchased two identical inventory items. The item purchased first cost $16.00, and the item purchased second cost $18.00. Blake sold one of the items for $24.00. Which of the following statements is true?

Ending inventory will be lower if Blake uses weighted average than if FIFO were used.

At a time of declining prices, which cost flow assumption will result in the highest ending inventory?

LIFO

Which inventory costing method will produce an amount for cost of goods sold that is closest to current market value?

LIFO

What is meant by "market" in lower-of-cost-or-market calculations?

The amount that would have to be paid to replace the merchandise.

In an inflationary environment,

a company's assets will be lower if it uses LIFO as opposed to FIFO cost flow.

Inventory turnover is calculated by dividing:

cost of goods sold by inventory.