Indicate the most likely effect of the following changes in inventory management on the inventory turnover ratio (use + for increase, for decrease, and NE for no effect).

The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise:

Beginning Inventory at FIFO: 16 Units @ $16 = $256

Beginning Inventory at LIFO: 16 Units @ $12 = $192

Transactions	Units	Unit Cost				Total Cost
Purchase, January 9	27	$	14			$	378
Purchase, January 20	53		19				1,007
Sale, January 21 (at $42 per unit)	38
Sale, January 27 (at $43 per unit)	27
Required: 1. Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:

	Units	Unit Cost
Inventory, December 31, prior year	1,880		$	6
For the current year:
Purchase, March 21	5,070			8
Purchase, August 1	2,870			9
Inventory, December 31, current year	4,110

Required:

Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average cost inventory costing methods. (Round "Average cost per unit" to 2 decimal places and final answers to nearest whole dollar amount.)

a. Have parts inventory delivered daily by suppliers instead of weekly. b. Extend payments for inventory purchases from 15 days to 30 days. c. Shorten production process from 10 days to 8 days