The Following Information Is Available for Wallace Company for 2014

question 59

Essay

The following information is available for Wallace Company for 2014. Wallace uses the LIFO inventory method. $\begin{array}{lr}\text { Beginning inventory } & 600,000 \\\text { Ending inventory } & 700,000 \\\text { Beginning LIFO reserve } & 200,000 \\\text { Ending LIFO reserve } & 300,000 \\\text { Cost of goods sold } & 5,980,000 \\\text { Sales } & 8,000,000\end{array}$ Instructions
(a) Calculate the inventory turnover and days in inventory for Wallace Company based on LIFO.
(b) Calculate the inventory turnover and days in inventory after adjusting for the LIFO reserve.

---

Definitions:

Intravascular Hemolytic Reaction

A medical condition where red blood cells are destroyed within the blood vessels, often due to an incompatible blood transfusion.

Blood Transfusion

The process of transferring blood or blood components from one person (donor) into the bloodstream of another person (recipient).

Normal Saline

A sterile solution of sodium chloride in water, commonly used as an intravenous infusion to hydrate patients or as a cleansing agent.

Antidiuretic Hormone

A hormone produced by the pituitary gland that helps the kidneys manage the amount of water in the body, particularly by preventing excessive water loss in urine.