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Early in 2012, Aragon Company switched to a just-in-time inventory system. Its sales and inventory amounts for 2011 and 2012 are shown below.
2011
2012
Sales revenue
$3,120,000
$3,713,000
Cost of goods sold
1,200,000
1,425,000
Beginning inventory
170,000
210,000
Ending inventory
90,000
Determine the inventory turnover and days in inventory for 2011 and 2012. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the two years.
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The concept of valuing Inventories at the Lower of Cost or Market and the estimated "full absorption cost" of manufacturing 100 stag horn buttons
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