The following information is for Poole Company for the current year:
$$\begin{array} { l l }
\text { Beginning inventory } & 200 \text { units @} \$ 110 \
\text { Purchase May } 12 & 100 \text { units @} \$ 120 \
\text { Purchase October 9 } & 150 \text { units @} \$ 125 \
\text { Seles} & 360 \text { units @} \$ 180
\end{array}$$ Required:Assuming that Poole uses the LIFO cost flow method, determine how much product cost would be allocated to Cost of Goods Sold, and how much to Merchandise Inventory at the end of the year. Show all calculations.Assuming that Poole uses the FIFO cost flow method, determine how much product cost would be allocated to Cost of Goods sold, and how much to Merchandise Inventory at the end of the year. Show all calculations.Compare your results from parts a and b. Do LIFO and FIFO give the same results for inventory turnover? Which is higher, and why?

Question

The following information is for Poole Company for the current year:
 $$\begin{array} { l l } 
\text { Beginning inventory } & 200 \text { units @} \$ 110 \
\text { Purchase May } 12 & 100 \text { units @} \$ 120 \
\text { Purchase October 9 } & 150 \text { units @} \$ 125 \
\text { Seles} & 360 \text { units @} \$ 180
\end{array}$$ Required:Assuming that Poole uses the LIFO cost flow method, determine how much product cost would be allocated to Cost of Goods Sold, and how much to Merchandise Inventory at the end of the year. Show all calculations.Assuming that Poole uses the FIFO cost flow method, determine how much product cost would be allocated to Cost of Goods sold, and how much to Merchandise Inventory at the end of the year. Show all calculations.Compare your results from parts a and b. Do LIFO and FIFO give the same results for inventory turnover? Which is higher, and why?

Quizplus · Accepted Answer

The Answer of The following information is for Poole Company for the current year:
 $$\begin{array} { l l } 
\text { Beginning inventory } & 200 \text { units @} \$ 110 \
\text { Purchase May } 12 & 100 \text { units @} \$ 120 \
\text { Purchase October 9 } & 150 \text { units @} \$ 125 \
\text { Seles} & 360 \text { units @} \$ 180
\end{array}$$ Required:Assuming that Poole uses the LIFO cost flow method, determine how much product cost would be allocated to Cost of Goods Sold, and how much to Merchandise Inventory at the end of the year. Show all calculations.Assuming that Poole uses the FIFO cost flow method, determine how much product cost would be allocated to Cost of Goods sold, and how much to Merchandise Inventory at the end of the year. Show all calculations.Compare your results from parts a and b. Do LIFO and FIFO give the same results for inventory turnover? Which is higher, and why?

The Following Information Is for Poole Company for the Current