The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 17 Units @ $19 = $323 Beginning Inventory at LIFO: 17 Units @ $15 = $255 January Transactions Purchase, January 9 Purchase, January 201 Sale, January 21 (at $39 per unit) Sale, January 27 (at $40 per unit) Required: Units 27 55 36 27 Unit Cost $17 22 Total Cost $ 459 1,210 1. Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. 2. Which costing method is the more accurate indicator of the efficiency of inventory management?

The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 17 Units @ $19 = $323 Beginning Inventory at LIFO: 17 Units @ $15 = $255 January Transactions Purchase, January 9 Purchase, January 201 Sale, January 21 (at $39 per unit) Sale, January 27 (at $40 per unit) Required: Units 27 55 36 27 Unit Cost $17 22 Total Cost $ 459 1,210 1. Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. 2. Which costing method is the more accurate indicator of the efficiency of inventory management?

Name: The records at the end of January of the current year for Young Compa
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Description: The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise:Beginning Inventory at FIFO: 17 Units @ $19 = $323Beginning Inventory at LIFO: 17 Units @ $15= $255January Transactions

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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