Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using...

50.1K

Verified Solution

Question

Accounting

Simple Plan Enterprises uses a periodic inventory system. Itsrecords showed the following:

Inventory, December 31, using FIFO â†’ 44 Units @ $17 = $748
Inventory, December 31, using LIFO â†’ 44 Units @ $13 = $572
Transactions in the Following Year Units Unit Cost Total Cost
Purchase, January 9 56 18 $ 1,008
Purchase, January 20 106 19 2,014
Sale, January 11 (at $41 per unit) 86
Sale, January 27 (at $42 per unit) 62
Required:
Compute the number and cost of goods available for sale, thecost of ending inventory, and the cost of goods sold under FIFO andLIFO.
Compute the inventory turnover ratio under the FIFO and LIFOinventory costing methods.
Does the inventory method used make a significant difference inthe inventory turnover ratio?
Next Visit question map
Question6of8Total6 of 8
Prev

Answer & Explanation Solved by verified expert

3.8 Ratings (612 Votes)

1 FIFO Under the FIFO method of inventory valuation units sold consists of the units from beginning inventory and the earliest purchases Ending inventory consists of the units from recent purchases Number of units available for sale Beginning inventory Purchases 44 56 106 206 Cost of goods See Answer

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!

Become a Member

Transactions in the Following Year	Units	Unit Cost	Total Cost
Purchase, January 9		56		18	$	1,008
Purchase, January 20		106		19		2,014
Sale, January 11 (at $41 per unit)		86
Sale, January 27 (at $42 per unit)		62