**Simple Plan Enterprises: Inventory System Analysis**Simple Plan Enterprises uses a periodic inventory system. Its records showed the following:**Inventory Details as of December 31:**- Using FIFO (First-In, First-Out) → 56 Units @ $23 = $1,288- Using LIFO (Last-In, First-Out) → 56 Units @ $19 = $1,064**Transactions in the Following Year:**| Date | Units | Unit Cost | Total Cost ||--------------|-------|-----------|-------------|| Purchase, January 9 | 68 | 24 | $1,632 || Purchase, January 20 | 118 | 25 | $2,950 || Sale, January 11 (at $47 per unit) | 98 | - | - || Sale, January 27 (at $48 per unit) | 74 | - | - |**Required Tasks:**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. Analyze whether the inventory method used makes a significant difference in the inventory turnover ratio.**Interactive Section:**Complete this question by entering your answers in the tabs below.**Calculation Table:**| | FIFO | LIFO ||---------------------|------|------|| Number of Goods Available for Sale (Units) | | || Cost of Goods Available for Sale | | || Cost of Ending Inventory | | || Cost of Goods Sold | | |To complete the exercise, fill in the blanks using the provided data and your computations. This analysis will enhance your understanding of inventory management and its impact on financial metrics.

The question is based on the concept of Cost Accounting.

Answered: Simple Plan Enterprises uses a periodic…

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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