es The records at the end of January 2012 for Captain Company showed the following for a particular kind of merchandise: Inventory, December 31, 2011, at FIFO: 17 Units @ $16 = $272 Inventory, December 31, 2011, at LIFO: 17 Units @ $12 = $204 Transactions Purchase, January 9, 2012 Purchase, January 20, 2012 Sale, January 21, 2012 (at $38 per unit) Sale, January 27, 2012 (at $39 per unit) Units 30 52 35 FIFO Inventory turnover ratio LIFO Inventory turnover ratio 27 Unit Cost $14 19 Total Cost $420 988 Required: 1. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods. (Do not round intermediate calculations and round your final answers to 2 decimal places.)
es The records at the end of January 2012 for Captain Company showed the following for a particular kind of merchandise: Inventory, December 31, 2011, at FIFO: 17 Units @ $16 = $272 Inventory, December 31, 2011, at LIFO: 17 Units @ $12 = $204 Transactions Purchase, January 9, 2012 Purchase, January 20, 2012 Sale, January 21, 2012 (at $38 per unit) Sale, January 27, 2012 (at $39 per unit) Units 30 52 35 FIFO Inventory turnover ratio LIFO Inventory turnover ratio 27 Unit Cost $14 19 Total Cost $420 988 Required: 1. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods. (Do not round intermediate calculations and round your final answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
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
Transcribed Image Text:es
The records at the end of January 2012 for Captain Company showed the following for a
particular kind of merchandise:
Inventory, December 31, 2011, at FIFO: 17 Units @ $16 = $272
Inventory, December 31, 2011, at LIFO: 17 Units @ $12 = $204
Transactions
Purchase, January 9, 2012
Purchase, January 20, 2012
Sale, January 21, 2012 (at $38 per
unit)
Sale, January 27, 2012 (at $39 per
unit)
Units
30
52
35
FIFO Inventory turnover ratio
LIFO Inventory turnover ratio
27
Unit Cost
$14
19
Total
Cost
$420
988
Required:
1. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing
methods. (Do not round intermediate calculations and round your final answers to
2 decimal places.)
Expert Solution
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Step 1: Introduce Inventory Turnover Ratio
VIEWStep 2: Computation of Cost of Goods Sold & Ending Inventory Using FIFO Method
VIEWStep 3: Computation of Cost of Goods Sold & Ending Inventory Using LIFO Method
VIEWStep 4: Computation of FIFO Inventory Turnover Ratio
VIEWStep 5: Computation of LIFO Inventory Turnover Ratio
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