Turner & Taft, a partnership, had these inventory data:
|
Ending inventory at: |
20X3 |
20X4 |
|
FIFO cost |
$18,000 |
$ 20,000 |
|
LIFO cost |
14,000 |
18,000 |
|
Cost of goods sold at: |
||
|
FIFO cost |
$ 85,500 |
|
|
LIFO cost |
92,800 |
|
|
Sales revenue |
138,000 |
Turner & Taft need to know the company’s gross profit percentage and rate of inventory turnover for 20X4 under
1. FIFO 2. LIFO
Which method makes the business look better on
3. Gross profit percentage? 4. Inventory turnover?