The J. Shaffer Company has an ending inventory of $360,500 and a cost of goods sold for the year of $2,100,000. It has used LIFO inventory for a number of years because of persistent inflation.

Required

a. Compute the days’ sales in inventory.

b. Is the J. Shaffer Company days’ sales in inventory as computed realistic in comparison with the actual days’ sales in inventory?

c. Would the days’ sales in inventory computed for the J. Shaffer Company be a helpful guide?