Inventory and cost of goods sold information for Lafleche Inc. is provided below: Required: a. Calculate the

Question:

Inventory and cost of goods sold information for Lafleche Inc. is provided below:

Required:
a. Calculate the inventory turnover ratio and average number of days in inventory under the two cost formulas.
b. Why are the amounts different under the two cost formulas?
c. Under which cost formula is inventory turning over morequickly?

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,...