The Following Information Is for Poole Company for 2016

question 126

Essay

The following information is for Poole Company for 2016:
Required: a)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.
b)Based on your results from part a,calculate inventory turnover and average number of days to sell inventory.
c)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.
d)Based on your results from part c,calculate inventory turnover and average number of days to sell inventory.
e)Compare your results from parts b and d.Do LIFO and FIFO give the same results for inventory turnover? Which is higher,and why?

---

Definitions:

Consequentialist Theory

A normative ethical theory that judges actions based on their consequences or outcomes.

Rawls Theory

A concept of justice as fairness, proposing principles of justice to structure society, formulated by philosopher John Rawls.

Equal Liberty

The principle that all individuals should have the same freedom and rights under the law.

Social Advantages

Benefits or privileges that certain individuals or groups have due to their status, position, or wealth in society, which can lead to inequality.