Problem

Elmer has cost of goods sold for a period of $2,000,000. Sales were $3,000,000. The beginning inventory for the period was $800,000, and the ending inventory was $1,200,000. What is the inventory turnover ratio?

Inventory Item A has a cost of $1,700. The replacement cost is $1,800. The item can be sold for $2,500 to a customer, and the normal profit margin is $1,000. At what amount should this item be reported in inventory on the balance sheet?

Beginning inventory cost $60,000 and retailed for $100,000. Purchases for the period were $240,000, and were marked to retail at $400,000. Sales for the period were $300,000. Using the retail method, what is the estimated gross profit for the period?