Question

Exercise 6-5 Linda's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Linda's purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Linda's uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost 26 45 Sept. 1 Sept. 12 Sept. 19 Sept. 26 Inventory Purchases Purchases Purchases $97 102 104 $ 2,522 4,590 2,080 5,250 20 105 Totals 141 $14,442 Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods. FIFO LIFO - The ending inventory at September 30 A Cost of goods sold to LINK TO TEXT VIDEO: APPLIED SKILLS VIDEO: SIMILAR EXERCISE For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold. FIFO LIFO

Answer 1

Solution

	FIFO	LIFO
Ending Inventory	$                 2,100	$                   1,940
Cost of Goods Sold	$               12,342	$                 12,502

.

	FIFO	LIFO
The sum of ending inventory and cost of goods sold	$               14,442	$                 14,442

Working

FIFO
Total Units Available for sale		141
Units Sold		121
Closing Stock in Units		20
Valuation
Ending Inventory	20	@	$           105.00	$ 2,100
Value Of Ending Inventory				$ 2,100
Cost of Goods sold				$ 12,342

.

LIFO
Total Units Available for sale		141
Units Sold		121
Closing Stock in Units		20
Valuation
Ending Inventory	20	@	$             97.00	$ 1,940
Value Of Ending Inventory				$              1,940
Cost of Goods sold	14442 minus 1940			$            12,502