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: 16 Units @ $16 = $256 Beginning Inventory at LIFO: 16 Units @ $12 = $192   January  Transactions Units Unit Cost Total Cost Purchase, January 9 28 $ 14 $ 392 Purchase, January 20 53   19   1,007 Sale, January 21 (at $42 per unit) 37         Sale, January 27 (at $43 per unit) 29             Required: 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? I got both answers wrong, and I'm sure why.  Please provide step of your solution. Thanks

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.