Calculate McLelland gross profit ratio

Assignment Help Accounting Basics

Reference no: EM132722936

Question - The recent financial statements of McLelland Clothing Inc. include the following data:

Sales $754,690

Cost of goods sold:

Computed under FIFO 528,600

Computed under LIFO 555,000

Average inventory:

Computed under FIFO 72,200

Computed under LIFO 45,800

Required -

1. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the FIFO inventory costing method.

2. Calculate McLelland's gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the LIFO inventory costing method.

Reference no: EM132722936

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