If Inventory on 1.1.2020 was OMR240,000, Inventory on 31.12.2020 wasOMR 320,000 and cost of goods soldwas OMR 900,000, the Inventoryconversion period will be:a. 113.55 daysb. 129.78 daysc. None of thesed. 97.33 days

Given: Opening Inventory = OMR 240,000 Closing Inventory = OMR 320,000 COGS = OMR 900,000

Answered: was OMR 900,000, the Inventory…

Business

Finance

was OMR 900,000, the Inventory conversion period will be:

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 5PEA

See similar textbooks

Related questions

Q: Vaughn Manufacturing had January 1 inventory of $295000 when it adopted dollar-value LIFO. During…

A: Last-in-First-Out Method, or simply called as LIFO Method, is an inventory system in accounting…

Q: An item of inventory was purchased for $500. It is expected to be sold for $1,200 although $250 will…

A: We have the following information: Inventory purchased: $500 Inventory expected to be sold at:…

Q: The records of Rami co. show the following data on June 30, 2020, During the month inventory Sold on…

A: Average Method:-It is the cost calculated by dividing the total cost by the total number of units.…

Q: The following information is available for the current year: Cost Retail 650,000 9,000,000 200,000…

A: Under the FIFO method, the Retail ratio cost is calculated by taking the values of purchases.…

Q: ANC Company had the following transactions: Beginning inventory, 200 at P5 per unit; purchased on…

A: The Numerical has covered the concept of the Moving Average method For Estimating Ending Inventory…

Q: On January 2020, Roel Corp. Has th following inventory…

A: Inventory valuation method: First in First out Last in First out Weighted average method In the…

Q: Co. C has the following units of beginning inventory and purchases for the year: beginning inventory…

A: Under FIFO method, units which are purchased first are sold first . Under FIFO method , ending…

Q: Company records disclose the following: OR Opening 95000 inventory 10000 Net sales OR Purchases…

A: Given information: Net sales = OR 95,000 Purchases = OR 45,000 Freight-in = OR 500 Opening inventory…

Q: Using Perpetual Inventory, identify cost of goods sold expense for Oct 2021 # Units

A: Cost of goods sold represents the cost incurred in order to sell the goods or provide service to the…

Q: On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing…

A: Inventory is the current assets of the company that is used in the production process.

Q: A firm had beginning inventory of OR 15000, ending inventory of OR 20000 and cost of goods sold of…

A: Statement of profit and loss account is prepared by a business to determine its financial results…

Q: -The EUP is 20,500 units. Cost incurred during the period is P56,250 while the cost of the beginning…

A: Solution: Equivalent units of production = 20500 Beginning inventory cost = P10,750 Cost incurred…

Q: On January 2020, Roel Corp. Has th following inventory…

A: FIFO method says that first in first out method in which inventories purchased first will be sold…

Q: Calculate inventory turnover when cost of goods is 1300000 and inventory is 241500

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (Beginning…

Q: Arna, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years…

A: LIFO Method: It is a method of inventory valuation where the inventory purchased last will be sold…

Q: When the physical count of Swifty Company inventory had a cost of $4390 at year end and the…

A: When ending inventory is overstated, this reduces the amount of inventory that would otherwise have…

Q: Hall Company’s beginning inventory and purchases during the fiscal year ended December 31, 20--,…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: On January 2020, Roel Corp. Has the following inventory purchases…

A: The inventory can be valued using various methods as FIFO, LIFO and weighted average method.

Q: During 2021, a company sells 500 units of inventory for $88 each. The company has the following…

A: The inventory valuation is based on the flow of inventory. The firm can adopt the LIFO method, FIFO…

Q: During the year, ABC Inc determined ending inventory and COGS under FIFO cost flow anc periodic…

A: Quantity sold = Quantity of opening stock + Quantity purchases - Quantity of closing stock Quantity…

Q: Using FIFO inventory method, the value of ending inventory on June 29th is A) $1,040 B) $1,095…

A: Total units available = 150 + 200 + 200 + 150 = 700 units Units sold = 500 units Units in Ending…

Q: Dunk Company adopted the dollar-value LIFO inventory method on 12/31/2020 and uses one inventory…

A: The following are the answers: 1. The price index for 2021 is \$4.25. 2. The ending inventory for…

Q: . The inventory at January 1, 2019, had a retail value of $39,000 and a cost of $31,130 based on the…

A: Solution: Raleigh Department Store LIFO Retail Method Cost Retail Cost to Retail ratio…

Q: Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both…

A: No. Account Titles and Explanations Debit Credit a. Cost of goods sold $21,000,000…

Q: ANC Company had the following transactions: Beginning inventory, 200 at P5 per unit; purchased on…

A: Moving Average Method is one the Inventory Valuation Method. Unit cost keep change as new Inventory…

Q: Fischer, Inc. had the following inventory in fiscal 2019. The company uses the average cost method…

A: Average cost per unit = ((100 x $10) + (200 x $12))/ 300 units = $3,400 / 300 units = $11.3333

Q: With the perpetual inventory system, which of the following entries would be made when inventory…

A: Cost of goods sold means for how much cost of goods has been sold by the business. Under perpetual…

Q: What is the inventory turnover if COGS is $10,000, beginning inventory was 200, and ending inventory…

A: Inventory Turnover:This is a financial metric used to quantify the number of times inventory is used…

Q: The inventory value for the financial statements of Z for the year ended 31st March 2022 was based…

Q: One hundred units of inventory on hand at the end of the year are recorded at their cost of $10 each…

A: LIFO Method : Under LIFO method the goods which comes last are sold first. Inventory in hand : 100…

Q: Value. On December 31, 2021, IJUN reported an inventory of P5,500,000 and an allowance for inventory…

A: Historical cost is the cost or the original cost of the Product which we used to own that.. Net…

Q: On January 1, 2018, the Taylor Company adopted the dollar-value LIFO method. The inventory value for…

A: 1. Find the value of inventory at the current cost 2. Convert it to base year cost 3. Then apply…

Q: At December 31, 2020, the following information was available from HIBISCUS Company's accounting…

A: The retail Inventory Method is an accounting method used to ascertain the value of the Closing…

Q: Under the lower-of-cost-or-market method, Blossom's estimated inventory at July 31, 2020 is (Hint:…

A: The ending inventory is the inventory left in the stock at the end of the period.

Q: At year-end, IMMUTABLE Co reported inventory at P3,900,000. Allowance for inventory write-down…

A: Answer: An inventory write-down is the required process used to reflect when an inventory loses…

Q: If a company purchased an inventory item for $1,200 and can sell it for $2,000 and can replace the…

A: As per the rule of lower of cost or market rule, inventory should be valued at lower of cost and…

Q: he cost per unit of inventory is P5, and the carrying cost is 10% of the average value c ory. The…

A: The cost of carrying the inventory is cost of storing the inventory and carrying the inventory. Is…

Q: ABC Company uses the retail inventory method to estimate its inventory for interim financial…

A: Ending inventory refers to the stock value which remains at the end of the fiscal year or the year…

Q: XYZ Company Began the year 2020 with 600 units of products in its January 1 Inventory costing BD35…

A: Date Description units cost per unit Total Cost 1Jan Opening Inventory 600 35 600*35=2100 4Jan…

Q: The following information was available for Concord Company at December 31, 2020: beginning…

A: Inventory turnover = cost of goods sold/Average inventory

Q: The inventory account of Leni Company at December 31, 2021 has a balance of P1,800,000 and was found…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Use the following information regarding Skysong, Inc. and Kingbird, Inc. to answer the question…

A: Given: Skysong, Inc No of days used for calculation = 365 days Inventory turnover (2022) =…

Q: ABC Company has average inventory of $45 000, cost of goods sold is $650 000. What is the inventory…

A: Given data; Average inventory = $45,000 Cost of goods sold = $ 650,000

Q: Sandhill Inc. reported inventory at the beginning of the current year of $320000 and at the end of…

A: Average inventory = (beginning inventory + ending inventory) /2 = (320000 + 371000) /2 = $345500

Q: Waterway, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3…

A: Year Inventory at end of year prices Price index Inventory at base year prices Change from…

Q: Grit Company had the following for 2019: • Purchase - P40,000 Purchase returns and allowances P2,000…

A: Purchase P40,000 Less: Purchase returns and allowances -P2,000 Net Purchase P38,000 Add:…

Q: Grotesque Company which employed the FIFO retail method provided the following inventory data: 2020…

A: The retail inventory method calculates the ending inventory by multiplying the retail closing stock…

Q: The following information is available for Cullumber Company for three recent fiscal years.…

A: Inventory Turnover Ratio: Inventory Turnover Ratio shows how effectively inventory is managed by…

Q: On 31 December 2020, a company has semi-finished inventory with a cost to date of OMR 63,500. It is…

A: Net realizable value is the net amount received from sales that is calculated by deducting the cost…

Question

If Inventory on 1.1.2020 was OMR
240,000, Inventory on 31.12.2020 was
OMR 320,000 and cost of goods sold
was OMR 900,000, the Inventory
conversion period will be:
a. 113.55 days
b. 129.78 days
c. None of these
d. 97.33 days

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.
Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the May 23 purchase, (b) the cost of the merchandise sold on May 26, and (c) the inventory on May 31.
When the double-extension approach to the dollar-value LIFO inventory cost flow method is used, the inventory layer added in the current year is multiplied by an index number. How would the following be used in the calculation of this index number?
Compare the calculations for gross margin for A76 Company, based on the results of the perpetual inventory calculations using FIFO, LIFO, and AVG.
If a group of inventory items costing $3,200 had been double counted during the year-end inventory count, what impact would the error have on the following inventory calculations? Indicate the effect (and amount) as either (a) none, (b) understated $______, or (c) overstated $______. Table 10.2
Beginning inventory, purchases, and sales for Meta-B1 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the July 23 purchase, (b) the cost of the merchandise sold on July 26, and (c) the inventory on July 31.
Inventory analysis A company reports the following: Determine (a) the inventory turnover and (b) the number of days sales in inventory. Round to one decimal place.
Financial statement data for years ending December 31 for Holland Company follow: a. Determine the inventory turnover for 20Y4 and 20Y3. b. Determine the days sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
If a group of inventory items costing $15,000 had been omitted from the year-end inventory count, what impact would the error have on the following inventory calculations? Indicate the effect (and amount) as either (a) none, (b) understated $______, or (c) overstated $______. Table 10.1
Cinco Company determined the following information for an inventory at year-end: P2,000,000 1,400,000 1,800,000 1,700,000 1,900,000 Historical cost Current replacement cost Net realizable value Net realizable value less a normal profit margin Fair value What amount should the inventory be reported at yearend? B. P1,700,000 C. P1,800,000 A. P1,400,000 D. P 1,900,000
If Wrecking Ball uses a periodic inventory system, the cost of the inventory using the periodic average cost flow assumption at January 31, 2022 is? a. P78,960 b. P98,000 c. P84,840 d. P98,240
Suppose the following:Beginning Inventory = 11257Ending Inventory= 12407Beginning Receivables = 6167Ending Receivables = 6879Beginning Payables = 8498Ending Payables = 8829Credit Sales = 93480Cost of Goods Sold = 72325Calculate the following (round final answers to 2 decimal places):Operating Cycle = daysCash Cycle = days