Simple Plan Enterprises uses a periodic inventory system. Its records showed the

Question

Simple Plan Enterprises uses a periodic inventory system. Its records showed the following Inventory, December 31, using FIFO46 Units $20 $920 Inventory, December 31, using LIFO 46 Units @ $16- $736 Transactions in the Following Year Purchase, January 9 Purchase, January 20 Sale, January 11, (at $44 per unit) Sale, January 27 (at $45 per unit) Units Unit Cost Total Cost 1,218 2,376 $21 58 108 64 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 FIFO LIFO Number of Goods Available for Sale (Units) Cost of Goods Available for Sale Cost of Ending Inventory Cost of Goods Sold 2. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods. (Round your answers to 2 decimal places.) FIFO LIFO Inventory Turnover Ratico

Explanation / Answer

1) Compute following :

2) Calculate inventory turnover :

FIFO LIFO Number of goods available for sale 212 212 Cost of goods available for sale 4514 4330 Cost of ending inventory 60*22 = 1320 (736+14*21) = 1030 Cost of goods sold 4514-1320 = 3194 4330-1030 = 3300

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