E6-37B. (Learning Objective 3: Computing gross profit percentage and inventory turnover)

Dunk & Dive, a partnership, had these inventory data:

Dunk & Dive 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?

Transcribed Image Text:

20X5 20X6 Ending inventory at: FIFO Cost................ LIFO Cost.............. $19,000 $ 22,000 16,000 23,000 Cost of goods sold at: FIFO Cost............... LIFO Cost. Sales revenue.. $ 87,500 95,200 145,000