074 points E7-14 Analyzing and Interpreting the Effects of the LIFO/FIFO Choice
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Question
074 points E7-14 Analyzing and Interpreting the Effects of the LIFO/FIFO Choice on l Simple Plan Enterprises uses a periodic inventory system. Its records showed the following Inventory, December 31, using FIFO-44 Units @ $17 $748 Inventory, December 31, using LIFO 44 Units@ $13 $572 Transactions in the Following YearUnits Unit Cost Total Cost Purchase, January 9 Purchase, January 20 Sale, January 11, (at $41 per unit) Sale, January 27 (at $42 per unit) 1,008 106 19 2,014 56 $18 86 62 Required 1. Compute the number and cost of goods available for sale, the cost of ending inventory, and the c 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 yo answers to 2 decimal olaces) O Type here to searchExplanation / Answer
Number of Goods available for sale: FIFO LIFO Beinning Inventory unit 44 44 Add: Purchase units 162 162 Number of units available for sale 206 206 Cost of Goods available for sale FIFO LIFO Cost of Beginning Inventory 748 572 Purchases 9-Jan 1008 1008 20-Jan 2014 2014 Cost of Goods available for sale 3770 3594 Ending Inventory and Cost of Goods sold is available as under STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ balance 44 17 748 44 17 748 Purchasse 9-Jan 56 18 1008 56 18 1008 20-Jan 106 19 2014 48 19 912 58 19 1102 TOTAL 206 3770 148 2668 58 19 1102 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ balance 44 13 572 44 13 572 Purchasse 9-Jan 56 18 1008 42 18 756 14 18 252 20-Jan 106 19 2014 106 19 2014 TOTAL 206 3594 148 2770 58 824 FIFO LIFO Number of goods available for sale 206 206 Cost of goods available for sale 3770 3594 Cost of Eending Inventory 1102 824 Cost of goods sold 2668 2770
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