The records at the end of January 2012 for All Star Company showed the following for a

Question:

The records at the end of January 2012 for All Star Company showed the following for a particular kind of merchandise:

Inventory, December 31, 2011 at FIFO 19 Units @ $16 = $304

Inventory, December 31, 2011 at LIFO 19 Units @ $10 = $190

The records at the end of January 2012 for All

Required:
Compute the inventory turnover ratio under the FIFO and LIFO inventory costing methods (show computations and round to the nearest dollar). Explain which you believe is the more accurate indicator of the efficiency of inventorymanagement.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...