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Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO Inventory, December 31, using LIFO -> 44 Units @ $17 = $748 44 Units @ $13 = $572 Transactions in the Following Year Purchase, January 9 Units 56 Unit Cost 18 Total Cost $ 1,008 Purchase, January 20 106 19 2,014 Sale, January 11 (at $41 per unit) Sale, January 27 (at $42 per unit) 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? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Required 3 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. Number of Goods Available for Sale (Units) Cost of Goods Available for Sale Cost of Ending Inventory Cost of Goods Sold FIFO LIFO

Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO Inventory, December 31, using LIFO -> 44 Units @ $17 = $748 44 Units @ $13 = $572 Transactions in the Following Year Purchase, January 9 Units 56 Unit Cost 18 Total Cost $ 1,008 Purchase, January 20 106 19 2,014 Sale, January 11 (at $41 per unit) Sale, January 27 (at $42 per unit) 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? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Required 3 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. Number of Goods Available for Sale (Units) Cost of Goods Available for Sale Cost of Ending Inventory Cost of Goods Sold FIFO LIFO

FINANCIAL ACCOUNTING
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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Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO Inventory, December 31, using LIFO -> 44 Units @ $17 = $748 44 Units @ $13 = $572 Transactions in the Following Year Purchase, January 9 Units 56 Unit Cost 18 Total Cost $ 1,008 Purchase, January 20 106 19 2,014 Sale, January 11 (at $41 per unit) Sale, January 27 (at $42 per unit) 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? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Required 3 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. Number of Goods Available for Sale (Units) Cost of Goods Available for Sale Cost of Ending Inventory Cost of Goods Sold FIFO LIFO <Required 1 Required 2 >
Transcribed Image Text:Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO Inventory, December 31, using LIFO -> 44 Units @ $17 = $748 44 Units @ $13 = $572 Transactions in the Following Year Purchase, January 9 Units 56 Unit Cost 18 Total Cost $ 1,008 Purchase, January 20 106 19 2,014 Sale, January 11 (at $41 per unit) Sale, January 27 (at $42 per unit) 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? Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Required 3 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. Number of Goods Available for Sale (Units) Cost of Goods Available for Sale Cost of Ending Inventory Cost of Goods Sold FIFO LIFO <Required 1 Required 2 >
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