The Following Information Is for Poole Company for the Current

question 44

Essay

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?

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Definitions:

Piaget's

Jean Piaget, a Swiss psychologist, garnered recognition for his foundational contributions to the study of child development, especially his cognitive development theory.

Mentally Rotate

The cognitive ability to imagine an object turning in space, often tested in spatial visualization tasks.

Fluid Intelligence

The intelligence quotient derived from tests involving tasks that require reasoning but not prior knowledge.