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:

Electronic Purchase

The process of buying goods or services over the internet through various digital platforms.

Acceptance

An agreement to the terms of an offer, thereby creating a binding contract.

Option

In finance, a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified timeframe.

Revoking

The action of withdrawing, canceling, or annulling something previously granted, such as a privilege, right, or contract.