Simple Plan Enterprises uses a periodic inventory system. Its records showed the following:

Inventory, December $31,$ using FIFO $42$ Units @ $$16=$ $$672$

Inventory, December $31,$ using LIFO $42$ Units @ $$12=$$$504$

Required:

Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and

LIFO.

Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods.

Does the inventory method used make a significant difference in the inventory turnover ratio?

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Does the inventory method used make a significant difference in the inventory turnover ratio?

Yes

NoSimple Plan Enterprises uses a periodic inventory system. Its records showed the following:

Inventory, December $31,$ using FIFO $->42$ Units @ $$16=$ $$672$

Inventory, December $31,$ using LIFO $->42$ Units @ $$12=$ $$504$

Transactions in the Following Year Units Unit Cost Total Cost

Purchase, January $95417$ $ $918$

Purchase, January $20104181,872$

Sale, January $11($at $$40$ per unit$)84$

Sale, January $27($at $$41$ per unit$)60$

Required:

Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and LIFO.

Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods.

Does the inventory method used make a significant difference in the inventory turnover ratio?