Use the following to answer the next three questions. Hint: Determine the ending inventory and COGS under each method before proceeding to answer the questions.

During the year, a firms inventory purchases were as follows:

Quarter Units

Purchased Cost per

Unit

Total

$1\mathrm{ 2}00$  $$11$ $$2,200$

$2\mathrm{ 3}00\mathrm{ 1}23,600$

$\mathrm{3 }300\mathrm{ 1}33,900$

$4\mathrm{ 2}00\mathrm{ 1}42,800$

$1,000$ $$12,500$

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

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

$11.$ If the firm uses the FIFO method, the inventory turnover ratio would be closest to:

$($Compute inventory turnover as COGS $/$ average inventory where average inventory is $($beg inv $+$ end inv$)/2.)$

 

Answer rating: 100% (QA)

FIFO Method Inventory Turnover Ratio 1 Calculate Ending Inventory and COGS Cost of Goods Sold for each Quarter Well use a table to track the calculati... View the full answer