Question

The records at the end of January 2014 for All Star Company showed the following for a particular kind of merchandise:
Inventory, December 31, 2013, at FIFO: 19 units @ $ 12 = $ 228
Inventory, December 31, 2013, at weighted average: 19 units @ $ 10 = $ 190
Required:
Compute the inventory turnover ratio under the FIFO and weighted- average inventory costing methods and a perpetual inventory system (show computations and round to the nearest dollar). Explain which method you believe is the better indicator of the efficiency of inventory management.


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  • CreatedAugust 04, 2015
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