Question

In: Accounting

What is the inventory turnover ratio using each of the following methods:

Quarter

Units

Purchased

Cost per

Unit

Total

1

200

$11

$2,200

2

300

12

3,600

3

300

13

3,900

4

200

14

2,800


1,000


$12,500

  • Inventory at the beginning of the 1st quarter: 400 units at $10 per unit.

  • Sales for the fiscal year: 800 units at $15 per unit.

What is the inventory turnover ratio using each of the following methods:

1. FIFO Method

2. Average Cost Method

3. LIFO Method

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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