1. 2014 2013 2. Dunbar Distribution markets CDs of numerous performing artists.

Question

1.

2014

2013

2. Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 3,295 CDs with a unit cost of $9. During March, Dunbar made the following purchases of CDs.

FIFO

LIFO

AVERAGE-COST

Deere & Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. Suppose it reported the following information in its 2014 annual report.
(in millions)

2014

2013

Inventories (LIFO) $2,366 3,030 Current assets 30,251 Current liabilities 13,044 LIFO reserve 1,488 Cost of goods sold 15,300

Explanation / Answer

1 Inventory Turnover = Cost of Goods Sold/Average Inventory Cost of Goods Sold =                        15,300 Average Inventory (3030+2366)/2= 2698 Inventory Turnover = 15300/2698=                  5.67 Inventory Days 365/Inventory turnover = 365/5.67= 64.37 Current ratio = Current Assets/Current liabilities 30251/13044=                  2.32 2 Qty rate Value Opening Inventory 3295 9              29,655 05-Mar Purchase 2636 11              28,996 13-Mar Purchase 4613 12              55,356 21-Mar Purchase 6590 13              85,670 26-Mar Purchase 2636 14              36,904 Total 19770            236,581 Cost of Goods Avialabe for Sales            236,581 Average Cost 236581/19770=                11.97 FIFO Ending Inventory Qty 19770-15816 3954 Value Qty rate Value 2636 14 36904 1318 13 17134 Total Closing Inventory 3,954              54,038 Cost of Goods Sold Op. Stock+purchase-Closing Stock Cost of Goods Sold 236581-54038= 182543 LIFO Ending Inventory Qty 19770-15816 3954 Value Qty rate Value 3295 9 29655 659 11 7249 Total Closing Inventory 3,954              36,904 Cost of Goods Sold Op. Stock+purchase-Closing Stock Cost of Goods Sold 236581-36904= 199677 Average Ending Inventory Qty 19770-15816 3954 Value Qty rate Value 3295 11.97 39441.15 Total Closing Inventory 3,295              39,441 Cost of Goods Sold Op. Stock+purchase-Closing Stock Cost of Goods Sold 236581-39441= 197140

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