The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 19 Units @ $16 = $304 Beginning Inventory at LIFO: 19 Units @ $12 = $228 January Transactions Purchase, January 9 Purchase, January 20 Sale, January 21 (at $38 per unit) Sale, January 27 (at $39 per unit) Units 25 50 40 25 Required 1 Required 2 Unit Cost Total Cost $325 950 Required: Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. Which costing method is more accurate indicator of the efficiency of inventory management? $13 19 Complete this question by entering your answers in the tabs below. FIFO Inventory turnover ratio LIFO Inventory turnover ratio Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. (Do not round intermediate calculations and round your final answers to 2 decimal places.)
The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 19 Units @ $16 = $304 Beginning Inventory at LIFO: 19 Units @ $12 = $228 January Transactions Purchase, January 9 Purchase, January 20 Sale, January 21 (at $38 per unit) Sale, January 27 (at $39 per unit) Units 25 50 40 25 Required 1 Required 2 Unit Cost Total Cost $325 950 Required: Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. Which costing method is more accurate indicator of the efficiency of inventory management? $13 19 Complete this question by entering your answers in the tabs below. FIFO Inventory turnover ratio LIFO Inventory turnover ratio Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. (Do not round intermediate calculations and round your final answers to 2 decimal places.)
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 2PB: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...
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