Cost of goods sold

ratio for Medtronic is .488 or 48.8%. The cost of goods sold for Medtronic is $3.689 billion and the average inventory of Medtronic is $1.764 billion, consequently the inventory turnover ratio of Medtronic is $3.689 billion/$1.764 billion = 2.091.The accounts receivable turnover ratio is 4.58 (CSI Market, 2014). The return on equity of Medtronic is 16.18%. The price to earnings ratio of Medtronic is 16.68 (Y-Charts, 2014). A share of Medtronic stock costs $63.25. All of this information indicates

Inventory Turnover = Cost of Goods Sold / Avg. Inventory Measure of Efficiency of inventory management 2015 2014 Inventory Turnover = 387,000 / 110,000 = 3.518 times Inventory Turnover = 275,000 / 80,000 = 3.4735 times The result of inventory turnover for Smith Enterprises being so small tends to be restricted sales volume. With this, the company requires a larger investment in inventory. Days ' Sales in Inventory = Ending Inventory / Cost of Goods Sold x 365 Measure of Liquidity in inventory 2015

SUBJECT: Product Costs and Cost of Goods Manufactured Report for August 2014 Introduction to John Deere John Deere has compromised to produce the best agricultural products in the market since 1837. Some of the agricultural products manufactured at John Deere include harvesters, tractors, trucks, planters, sprayers, seeders, and utility task vehicles. Many of the machines operating at John Deere’s factories run for 24 hours during the whole month. To specifically determine the cost of goods manufactured

CHAPTER 17 JOB ORDER COST SYSTEMS AND OVERHEAD ALLOCATIONS OVERVIEW OF BRIEF EXERCISES, EXERCISES, PROBLEMS, AND CRITICAL THINKING CASES Brief Exercises B. Ex. 17.1 B. Ex. 17.2 B. Ex. 17.3 B. Ex. 17.4 B. Ex. 17.5 B. Ex. 17.6 B. Ex. 17.7 B. Ex. 17.8 B. Ex. 17.9 B. Ex. 17.10 Topic Accounting for overhead Transferring costs Overhead application rates Actual and applied overhead Selecting a cost system Applying direct labor Applying direct materials Recording manufacturing costs Selecting activity bases

will allow Whirlpool Europe to improve operating effectiveness and efficiency. The cost of implementation of the ERP is quite substantial. However, the benefits do outweigh the costs when net present value is calculated and compared. Once the ERP system is implemented, sales offices will be able to view inventory across the entire supply chain to determine what

sales that would normally have occurred in 1998 were recorded in 1997. Assuming a positive gross profit on these sales, earnings in 1997 is inflated. Requirement 2 A customer would probably not be expected to pay for goods purchased using this bill and hold strategy until the goods were actually received. Receivables would therefore increase. Requirement 3 Sales that would normally have been recorded in 1998 were recorded in 1997. This bill and hold strategy shifted sales revenue and therefore

Credit transactions in the Original Production appear as “Discounts Straws:GRI.” For these transactions, quantities are listed as positive but the revenue associated with the transactions is $0. In contrast, transactions with “Inventory” in the name field in the Original Production seem to account for over $4 million in sorting revenue. What do these transactions represent? Are they actual sales? Why do these transactions no longer appear in the 2011-2015 data? In the Updated Production for

year. With the operating budget the company can forecast the overall health of the enterprise. Management is able to foresee the financial strength of the company based on the sales revenue, Cost of Goods Sold (COGS), the operation expense that then provides the budgeted income statement. Although good management is required to ensure a company’s fiscal health, the operation budget if well planned is the actual path that will ensure success. The operating budget is a part of the Master Budget

Manufacturing, Inc. produces snow shovels. The selling price per snow shovel is $30. There is no beginning inventory. Costs involved in production are: Direct material $5 Direct labor $4 Variable manufacturing overhead $3 Total variable manufacturing costs per unit $12 Fixed manufacturing overhead cost per year $180,000 In addition, the company has fixed selling and administrative costs of $160,000 per year. Exercise 5-11. During the year, Summit produces 50,000 snow shovels and sells 45,000

entries: Cash                            500 Account receivable                        500 8. Product repurchase agreement Manufacturer A has no revenue in 2006, for it promised to repurchase the merchandise from Wholesaler B at the moment A sold them in December 2006, even though the repurchase happened in 2007. A also agreed to repurchase merchandise with higher price later on. This is a financing activity but not the operating activity. $100,000 of the payment should be considered as notes