The records at the end of January of the current year for Young Company showed...
80.2K
Verified Solution
Link Copied!
Question
Accounting
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
January Transactions
Units
Unit Cost
Total Cost
Purchase, January 9
26
$
17
$
442
Purchase, January 20
54
22
1,188
Sale, January 21 (at $42 per unit)
35
Sale, January 27 (at $43 per unit)
27
Required:
1. Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods.
2. Which costing method is the more accurate indicator of the efficiency of inventory management?
please also show how you got the answer, thank you
Required 1 Required 2 Compute the inventory turnover ratio for the month of January under the FIFO and LIFO in round intermediate calculations and round your final answers to 2 decimal places.) FIFO Inventory turnover ratio LIFO Inventory turnover ratio
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
please also show how you got the answer, thank you