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: 19 Units @ $16 = $304 Beginning Inventory at LIFO: 19 Units @ $12 = $228 January Transactions Purchase, January 9 Purchase, January 20 Sale, January 21 (at $38 per unit) Sale, January 27 (at $39 per unit) Units 25 50 40 25 Required 1 Required 2 Unit Cost Total Cost $325 950 Required: Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. Which costing method is more accurate indicator of the efficiency of inventory management? $13 19 Complete this question by entering your answers in the tabs below. FIFO Inventory turnover ratio LIFO Inventory turnover ratio Compute the inventory turnover ratio for the month of January 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 of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 19 Units @ $16 = $304 Beginning Inventory at LIFO: 19 Units @ $12 = $228 January Transactions Purchase, January 9 Purchase, January 20 Sale, January 21 (at $38 per unit) Sale, January 27 (at $39 per unit) Units 25 50 40 25 Required 1 Required 2 Unit Cost Total Cost $325 950 Required: Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. Which costing method is more accurate indicator of the efficiency of inventory management? $13 19 Complete this question by entering your answers in the tabs below. FIFO Inventory turnover ratio LIFO Inventory turnover ratio Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

Name: E7-17 (Static) Analyzing and Interpreting the Effects of the LIFO/FIF
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Description: E7-17 (Static) Analyzing and Interpreting the Effects of the LIFO/FIFO Choice on Inventory TurnoverRatio LO 7-6The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise:Beginnin

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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The inventory records of TC show the following purchases:Month Units CostJanuary 15,000 190,500February 20,000 240,000March 12,500 165,00A physical count on March 31 shows 22,500 units on hand. What amount of inventory should be reported as of March 31, using FIFO method of costing?a. 120,000 b. 225,000 c. 280,500 d. 285,000
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