The Red Wagon Shop had the following inventory data:

Company managers need to know the company’s gross profit percentage and rate of inventory turnover for 2018 under

1. FIFO.

2. LIFO.

Which method produces a higher gross profit percentage? A higher inventory turnover?

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2017 2018 Ending inventory at: FIFO Cost. $27,920 $ 30,500 LIFO Cost.. 12,510 20,150 Cost of goods sold at: FIFO Cost. $ 87,630 LIFO Cost. 97,980 138,000 Sales revenue