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 @ $18= $306 Inventory, December 31, 2011, at LIFO: 17 Units @ $14 = $238 Transactions Purchase, January 9, 2012 Purchase, January 20, 2012 Sale, January 21, 2012 (at $39 per unit) Sale, January 27, 2012 (at $40 per unit) Units 28 54 39 26 Unit Cost $16 21 Total Cost $448 1,134 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.)
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 @ $18= $306 Inventory, December 31, 2011, at LIFO: 17 Units @ $14 = $238 Transactions Purchase, January 9, 2012 Purchase, January 20, 2012 Sale, January 21, 2012 (at $39 per unit) Sale, January 27, 2012 (at $40 per unit) Units 28 54 39 26 Unit Cost $16 21 Total Cost $448 1,134 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
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 @ $18= $306
Inventory, December 31, 2011, at LIFO: 17 Units @ $14 = $238
Transactions
Purchase, January 9, 2012
Purchase, January 20, 2012
Sale, January 21, 2012 (at $39 per
unit)
Sale, January 27, 2012 (at $40 per
unit)
Units
28
54
39
FIFO Inventory turnover ratio
LIFO Inventory turnover ratio
26
Unit Cost
$16
21
Total
Cost
$448
1,134
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.)
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