Use the following to answer the next three questions. Hint: Determine the ending inventory and COGS under each method before proceeding to answer the questions.

During the year, a firms inventory purchases were as follows:

Quarter	Units Purchased	Cost per Unit	Total
1	200	$11	$2,200
2	300	12	3,600
3	300	13	3,900
4	200	14	2,800
	1,000		$12,500

• Inventory at the beginning of the 1st quarter: 400 units at $10 per unit.
• Sales for the fiscal year: 800 units at $15 per unit.

12) If the firm uses the average cost method, the inventory turnover ratio would be closest to:

(Compute inventory turnover as COGS / average inventory where average inventory is (beg inv + end inv)/2.)

	1.20
	1.30

	1.45
	1.70