Part B

The following information is available for Kippa Company for 2021. Kippa uses the LIFO inventory method.

Beginning inventory $ 600,000

Ending inventory 700,000

Beginning LIFO reserve 200,000

Ending LIFO reserve 300,000

Cost of goods sold 5,720,000

Sales 8,000,000

Instructions

1. Calculate the inventory turnover ratio and days in inventory for Kippa based on LIFO.

2. Calculate the inventory turnover ratio and days in inventory on a FIFO basis, after adjusting for the LIFO reserve.