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KW Steel Corp. uses the LIFO method of inventory valuation. Waretown Steel, KW’s major competitor, instead...

KW Steel Corp. uses the LIFO method of inventory valuation. Waretown Steel, KW’s major competitor, instead uses the FIFO method. The following are excerpts from each company’s 2014 and 2013 financial statements:

KW Steel Corp.

Waretown Steel

2014

2013

2014

2013

Balance sheet inventories

800

700

720

700

LIFO reserve

400

350

Sales

4,300

4,000

3,500

3,350

Cost of goods sold

3,400

3,200

2,700

2,600

Calculate 2014 inventory turnover for both companies. Then re-calculate KW Steel’s 2014 inventory turnover if they converted to FIFO.

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