Simple Plan Enterprises uses a periodic inventory system. Its records showed the following:Inventory, December 31, using FIFOInventory, December 31, using LIFO- 44 Units @ $17 = $74844 Units @ $13 = $572Transactions in the Following YearPurchase, January 9Purchase, January 20Sale, January 11 (at $41 per unit)Sale, January 27 (at $42 per unit)UnitsUnit CostTotal Cost5618$ 1,008106192,0148662Required:1. Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO andLIFO.2. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods.3. Does the inventory method used make a significant difference in the inventory turnover ratio?

Name: Simple Plan Enterprises uses a periodic inventory system. Its records
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Description: Simple Plan Enterprises uses a periodic inventory system. Its records showed the following:Inventory, December 31, using FIFOInventory, December 31, using LIFO- 44 Units @ $17 = $74844 Units @ $13 = $572Transactions in the Following YearPurchase, Ja

Inventory Turnover ratio = Cost of goods sold / Average Inventory Average inventory = ( Opening…

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Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO 44 Units @ $17 $748 Inventory, December 31, using LIFO 44 Units @ $13 = $572 Transactions in the Following Year Purchase, January 9 Purchase, January 20 Sale, January 11 (at $41 per unit) Sale, January 27 (at $42 per unit) Units Unit Cost Total Cost 56 $ 1,008 2,014 18 106 19 86 62 Required: 1. Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and LIFO 2. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods. 3. Does the inventory method used make a significant difference in the inventory turnover ratio?

Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO 44 Units @ $17 $748 Inventory, December 31, using LIFO 44 Units @ $13 = $572 Transactions in the Following Year Purchase, January 9 Purchase, January 20 Sale, January 11 (at $41 per unit) Sale, January 27 (at $42 per unit) Units Unit Cost Total Cost 56 $ 1,008 2,014 18 106 19 86 62 Required: 1. Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and LIFO 2. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods. 3. Does the inventory method used make a significant difference in the inventory turnover ratio?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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