0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
How do you find desired ending inventory?
fixed percent times preceding year's budgeted sales
When preparing a merchandise purchase budget the required purchase in units equals?
budgeted unit sales - beginning merchandise inventory + desired merchandise ending inventory.
The inventory turnover is calculated by dividing cost of goods sold by?
ending inventory
Digitex Inc had sales of 6000 units in March A 50 percent increase is expected in April The company will maintain 5 percent of expected unit sales for April in ending inventory Beinning inventory fo?
Digitex, Inc. Projected sales 9000(6000x1.5) +desired ending inventory 450(5%of 9000) -Beginning inventory..... 200units Units to be produced.... 9,250 units
An overstatement of ending inventory in one period results in?
An overstatement of ending inventory in one period results in
In order to estimate production requirements you do what?
add projected sales in units to desired ending inventory and subtract beginning inventory
How do you find desired ending inventory?
fixed percent times preceding year's budgeted sales
How do you calculate inventory turnover?
This is a very simple calculation. Days to Sell Inventory(or Days in Inventory) = Average Inventory / Annual Cost of Goods Sold /365 Average Inventory = (Beginning Inventory + Ending Inventory) / 2 To calculate this ratio for a quarter instead of a year use the following variation: Days to Sell Inventory (or Days in Inventory) = Average Inventory / "Quarterly" Cost of Goods Sold /"90" Average Inventory = (Beginning Inventory + Ending Inventory) / 2
When preparing a merchandise purchase budget the required purchase in units equals?
budgeted unit sales - beginning merchandise inventory + desired merchandise ending inventory.
What does open to buy mean?
Open to buy is a method of planning and controlling retail inventory. Calculate your opening inventory balance (in units or dollars), add the in-coming (already ordered) inventory and subtract your projected sales for the period...then compare that number to your desired ending inventory amount...the difference is how much you are open to buy (inventory that should be ordered). So if you start with 100,000 and have 10,000 on order and expect sales to be 40,000 and you want your ending inventory to be 90,000...You are open to buy 20,000 90- (100 + 10 - 40) = 20
The inventory turnover is calculated by dividing cost of goods sold by?
ending inventory
How to calculate the stock turn rate?
In the sense of finding the STR for marketing/research purposes: Stock Turn Rate = Cost of Goods Sold/Average Inventory Average Inventory = Beg. Inventory + Ending Inventory = X then.. X/2
Digitex Inc had sales of 6000 units in March A 50 percent increase is expected in April The company will maintain 5 percent of expected unit sales for April in ending inventory Beinning inventory fo?
Digitex, Inc. Projected sales 9000(6000x1.5) +desired ending inventory 450(5%of 9000) -Beginning inventory..... 200units Units to be produced.... 9,250 units
How do you calculate the cost of goods sold without an beginning or ending inventory?
It is ok with there is no opening or closing inventory in that case where company is starting business first month and also there would be no beginning inventory if in last month there were no closing inventory in that case purchases are considered as cost of goods sold.
An overstatement of ending inventory in one period results in?
An overstatement of ending inventory in one period results in
How do you calculate the ending direct materials inventory?
Beginning Direct Materials Add: Materials purchased during period Less: Materials Used during period Equals: Ending Direct Materials
What is the difference between ending inventory using LIFO and ending inventory using FIFO referred to as?
LIFO Reserve
