The records at the end of January 2014 for All Star Company showed the following for a

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.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...

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CASE A FIFO Cost of goods available for sale for FIFO Units 19 25 50 94 Amount 228 375 800 1403 Endi...View the full answer

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I am a highly enthusiastic person who likes to explain concepts in simplified language. Be it in my job role as a manager of 4 people or when I used to take classes for specially able kids at our university. I did this continuously for 3 years and my god, that was so fulfilling. Sometimes I've skipped my own classes just to teach these kids and help them get their fair share of opportunities, which they would have missed out on. This was the key driver for me during that time. But since I've joined my job I wasn't able to make time for my passion of teaching due to hectic schedules. But now I've made a commitment to teach for at least an hour a day. I am highly proficient in school level math and science and reasonably good for college level. In addition to this I am especially interested in courses related to finance and economics. In quest to learn I recently gave the CFA level 1 in Dec 19, hopefully I'll clear it. Finger's crossed :)

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Financial Accounting

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5th Canadian edition

Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M

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Question Posted: Aug 04, 2015 04:11 AM

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The records at the end of January 2014 for All Star Company showed the following for a

Question:

Transactions Purchase, January 9, 2014 Purchase, January 20, 2014 Sale, January 11, 2014 (at $38 per unit) Sale, January 27, 2014 (at $39 per unit) Units Unit Cost Total Cost $375 25 50 40 28 15 16

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CASE A FIFO Cost of goods available for sale for FIFO Units 19 25 50 94 Amount 228 375 800 1403 Endi...View the full answer

Financial Accounting

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