Compute the inventory turnover ratio


Response to the following problem:

The records at the end of January 2012 for Captain Company showed the following for a particular kind of merchandise: Inventory,

December 31, 2011, at FIFO: 19 Units @ $16 = $304 Inventory,

December 31, 2011, at LIFO: 19 Units @ $12 = $228 Transactions Purchase,

January 9, 2012 (units: 25, unit cost: $14, total cost: $350) Purchase,

January 20, 2012 (units: 50, unit cost: $19, total cost: $950)

Sale, January 21, 2012 (at $38 per unit)

Sale, January 27, 2012 (at $39 per unit)

Required: Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods.

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Cost Accounting: Compute the inventory turnover ratio
Reference No:- TGS02084479

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