Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO → 42 Units @ $16 = $672 Inventory, December 31, using LIFO 42 Units @ $12 = $504 Transactions in the Following Year Purchase, January 9 Units 54 Purchase, January 20 104 Unit Cost 17 18 Total Cost $ 918 1,872 Sale, January 11 (at $40 per unit) Sale, January 27 (at $41 per unit) 84 60 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. Required 1 Required 2 Required 3 Does the inventory method used make a significant difference in the inventory turnover ratio? O Yes ONO < Required 2 Required 3 >

Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO → 42 Units @ $16 = $672 Inventory, December 31, using LIFO 42 Units @ $12 = $504 Transactions in the Following Year Purchase, January 9 Units 54 Purchase, January 20 104 Unit Cost 17 18 Total Cost $ 918 1,872 Sale, January 11 (at $40 per unit) Sale, January 27 (at $41 per unit) 84 60 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. Required 1 Required 2 Required 3 Does the inventory method used make a significant difference in the inventory turnover ratio? O Yes ONO < Required 2 Required 3 >

Name: Simple Plan Enterprises uses a periodic inventory system. Its records
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Description: Simple Plan Enterprises uses a periodic inventory system. Its records showed the following:Inventory, December 31, using FIFO → 42 Units @ $16 = $672Inventory, December 31, using LIFO 42 Units @ $12 = $504Transactions in the Following YearPurchase,

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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