E6-24A. (Learning Objective 4: Computing gross profit percentage and inventory turnover)

Thick & Thin, a partnership, had the following inventory data:

Thick & Thin need to know the company’s gross profit percentage and rate of inventory turnover for 20X6 under:
1. FIFO 2. LIFO Which method makes the business look better on:
3. Gross profit percentage?
4. Inventory turnover?

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Ending inventory at: 20X5 20X6 FIFO Cost................ $22,000 $24,000 LIFO Cost......... 10,000 16,000 Cost of goods sold at: FIFO Cost................. $ 82,500 LIFO Cost............... Sales revenue.............. 98,200 148,000