Company DEF kept the following inventory record in 2020. The company had been adopting First in, First out (FIFO) to record the inventory cost. All figures are in thousands except unit price.

I. Calculate inventory turnover and gross profit margin for 2020. (Hint: Beginning Inventory as of 1 January 2020 is equal to Ending Inventory as of 31 December 2019.) (Round your answer to three decimal places.)

ii. If Company DEF switched its inventory costing method from First in, First out (FIFO) to Last in, First out (LIFO) in 2020, recalculate inventory turnover and gross profit margin for 2020. (Round your answer to three decimal places.)

iii. What difference do you notice between the FIFO-based ratios and the LIFO-based ratios? Briefly explain. (Maximum words: 100)

Year ended 31 December Beginning Inventory, 1 January: 130 units @ $9.00 Purchase 200 units @ $10.00 Purchase 50 units @ $10.50 Purchase 110 units @ $12.00 Ending Inventory, 31 December: 120 units 2020 $ 1,170 2,000 525 1,320 Additional information: Company DEF reported a sales revenue of $5,550 in 2020