Does LIFO or FIFO give the best—most current—balance sheet value for the ending inventory? Why?
Answer to relevant QuestionsWhat does the inventory turnover ratio measure? What does average-days-in-inventory mean?Calculate the cost of goods sold and the cost of the ending inventory using the weighted average cost flow assumption. Assume periodic record keeping.Sales ........... 100 units at $15 per unitBeginning inventory ..... 90 ...Invoice price of goods is $1,000. Purchase terms are 1/10, n/30 and the invoice is paid in the week of receipt. The shipping terms are FOB shipping point, and the shipping costs amount to $200. What is the total cost of the ...Using the following information, calculate inventory turnover ratio, the average days in inventory, and the gross profit ratio for Howard Company for the year ended December 31, 2011. (Round to two decimal places.)Sales ...Given the following information, calculate the gross profit and gross profit ratio under (a) FIFO periodic and under (b) LIFO periodic:Sales .............. 250 units at $100 per unitBeginning inventory ....... 75 units at ...
Post your question