The records at the end of January of the current year for Young Company showed t

Question

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@ $19 $304 Beginning Inventory at LIFO: 16 Units $15 $240 Unit Cost $17 Transactions Purchase, January 9 Purchase, January 20 Sale, January 21 (at $43 per unit) Sale, January 27 (at $44 per unit) Units 26 54 38 30 Total Cost $442 1,188 Required 1. 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.) LIFO imventoy cosating methos FIFO Inventory turnover ratio LIFO Inventory turnover ratio

Explanation / Answer

Calculate inventory turnover :

FIFO LIFO Total unit available for sale 96 96 Cost of goods available for sale 1934 1870 Cost of goods sold 1318 1426 Ending inventory (28*22)=616 (16*15+12*17)=444 Beginning inventory 304 240 Average inventory 460 342 Inventory turnover 2.87 4.17

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