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ert snowboards were sold Boarders uses a periodic inventory system

Boarders sells a snow board, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Boarders’s purchases of Xpert snow boards during September. During the same month, 121 X pert snowboards were sold. Boarders uses a periodic inventory system.

               Date         Explanation         Units        Unit Cost          Total Cost

           Sept. 1          Inventory                 26               $97                 $ 2,522

           Sept. 12        Purchases               45               102                      4,590

           Sept. 19        Purchases               20               104                      2,080

           Sept. 26        Purchases               50               105                      5,250

Totals                141                                       $ 14,442

Instructions

(a) Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method.

(b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold. What do you notice about the answers you found for each method?

May 11 2018 View more View Less

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