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 FIFO40 Units @ $17 $680 Inventory, December 31, using LIFO 40 Units$13 $520 Transactions in the Following Year Purchase, January 9 Purchase, January 20 Sale, January 11, (at $41 per unit) Sale, January 27 (at $42 per unit) Units Unit Cost Total Cost $18 19 936 1,938 52 102 82 58 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 Ratio

Explanation / Answer

1) Calculate following :

2) Inventory turnover :

FIFO LIFO Number of goods available for sale (units) 194 194 Cost of goods available for sale 3554 3394 Cost of ending inventory 54*19 = 1026 (520+14*18) = 772 Cost of goods sold 2528 2622

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