Question

Sheffield's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Sheffield's purchases and sales of Xpert snowboards during September is shown below. During the same month, 140 Xpert snowboards were sold. Additional data regarding Sheffield's sales of Xpert snowboards are provided below. Assume that Sheffield's uses a perpetual inventory system. Date Explanation Units Unit Cost Sept. 1 Inventory Total Cost $ 2,970 5,460 2,461 Sept. 12 Purchases 52 23 105 107 Sept. 19 Purchases Sept. 26 Purchases 6.496 Totals $17,387 Unit Price Total Revenue Date Units $199 $2.786 Sept. 5 Sept. 16 Sept. 29 199 11,542 Sale Sale Sale Totals 200 14212 68 140 $28.540

Answer 1

Computation of moving Average Cast Date Acceptance Dispatch Balance Quatity/ Cost Takel Quantity cast catel Quantity/ Cast Total Cast Units : Cast Units & Sep 30 gg 2970 Seps 14 99 1386 16 99 1584 Sep 12 52 tos 5460 168 - 103.59 7044 Sep 16 58 103.596008.22. 10 103,59 1035.9 Sep 19 23 107 2461 105.97 34969 Sep 26/58 112 6496 109.81 9992-9 Sepas 1.81 7462.0823 109.81 052563 191 Computed moving Average Cast Griven below to September 1 September s September 12 September 16 September 19 September 26 September 29 & 2920 $ 1584 $ 7044 1035.9 $ 3496.9 9992.9 8 2525.63

Date Acceptance | Units Cost Fifo Method I Dispatch I units Cast Tatal Tatal Tu Balance units catal Caft Catal g 2970 Sept Seps Sep 12 30 16 14 99 1386 99 1584 (52 105 5460 93 10S 1584 SAGO Sep 16 1584 4410 los TOS 107 2461 Sep19 Sep 26 Sepag 23 158 107 112 1050 loso 2451 TOSO 2461 6496 6496 105 10 1 105 107 loso 2461 3920 23 112 2576

Fifo Ending Inventary Lifo Cast moving Auerage Cast $2576 $3451 $ 2525 -63 Periodic 1 Perpetual ding Inventory $ 2576 $ 2576 Ending Incentry $ 2277 $ 3451

Under the FIFO cost flow method. We have same ending inventory value under both periodic and I perpetual The LIFO cost flow method, gives the different ending inventory values

- Date Acceptance Units Cost Balance Lifo Method Dispatch Units Cast - Total Lost Total Units lost lost Cost 2970 Sepi 1584 14 99 1386 dep s 1584 S460 Sep 12/52 los 5460 Sep 16 52 16 2 2461 105 gg 99 5460 sgu. 99 107 107 Sep 19/23 ggo ggo 2461 ggo 2461 6 496 ggo 2465 99 107 112_ 6496 Sep 26.58 11 depze 158 10 112 107 Sep 29

Page 2 Date fifo Periodic Unit avalilable for Sale 30+ 52+ 23 + 58. ☆ T63 Whits sold 14458 140 + 68 7 units in Ending Inuentary uary (163-17 23 Units Unitscest Tatal cast Ending 23x 112 $2576 Inventory Lifo Periodic units Available is 30+52+ 23+58 foor Sale 163 14+ s8+ 68 units sold to 140 units in Ending & 16.2 - 140 Тойоло 23 Tending Enventory & 23x99 $2277