Question

Causwell Company began 2021 with 25,000 units of inventory on hand. The cost of each unit was $6.00. During 2021 an additional 45,000 units were purchased at a single unit cost, and 35,000 units remained on hand at the end of 2021 (35,000 units therefore were sold during 2021). Causwell uses a periodic inventory system. Cost of goods sold for 2021, applying the average cost method, is $241,500. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used.

Required:
1. Determine the cost of goods sold for 2021 using the FIFO method. What is the FIFO cost of Goods Sold?

2. 2. Determine the cost of goods sold for 2021 using the LIFO method. What is the LIFO cost of Goods Sold?

13.

Real World Financials

The table below contains selected information from recent financial statements of Green and White, two companies in the home improvement retail industry ($ in millions):

	Green						White
	1/28/2018			1/29/2017			2/2/2018			2/3/2017
Net sales	$	102,404		$	96,095		$	70,119		$	66,517
Cost of goods sold		68,048			63,782			46,710			44,053
Year-end inventory		14,248			14,049			12,893			11,958

Required:
Calculate the gross profit ratio, the inventory turnover ratio, and the average days in inventory for the two companies for their fiscal years ending in 2018. (Use 365 days a year. Round "Inventory turnover ratio" to 2 decimal places. Enter dollar amounts in millions rounded to the nearest whole number.)

Gross Profit Ratio Choose Numerator: / Choose Denominator: = Gross Profit Ratio / = Gross profit ratio Green / = 0 % White / = 0 % Inventory Turnover Ratio Choose Numerator: / Choose Denominator: = Inventory Turnover Ratio / = Inventory turnover ratio Green / = 0 times White / = 0 times Average Days in Inventory Choose Numerator: / Choose Denominator: = Average Days in Inventory Average days in inventory Green / = 0 days White / = 0 days

Answer 1

Answer to first question only as per answering guidelines