Computech Industries Below Is Financial Data for Computech Industries' Current

question 8

Multiple Choice

Computech Industries Below is financial data for Computech Industries' current year.
Refer to the data for Computech Industries.
Based on this information,what is Computech's number of days' sales in inventory (assuming a 360 day year) ?

• A)132 days
• B)216 days
• C)1,091 days
• D)120 days

---

Definitions:

Lower of Cost

An inventory valuation method requiring inventory to be recorded at the lower of its historical cost or current market value.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are the first to be expensed.

Inventory Holding Gains

Inventory holding gains are increases in the value of inventory a company holds due to price inflation or increased demand, not yet realized through sales.

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a common set of accounting rules and standards for financial reporting.