E7-14 Analyzing and Interpreting the Effects of the LIFO/FIFO Choice on Inventory Turnover Ratio

Analyzing and Interpreting the Effects of the LIFO/FIFO Choice on inventory Turnover Ratio Simple Plan Enterprises uses a periodic inventory system. Its records showed the following: Inventory, December 31, using FIFO rightarrow 50 Units @ $20 = $1,000 Inventory, December 31, using LIFO rightarrow 50 Units @ $16 = $800 Required: 1. Compute the number and cost of goods available for sale, the cost of ending inventory, and the cost of goods sold under FIFO and LIFO. 2. Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods