Question

Exercise 6-05 a-b (Video) Sandra's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Sandra's purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Sandra's uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 26 $95 $ 2,470 Sept. 12 Purchases 45 100 4,500 Sept. 19 Purchases 20 102 2,040 Sept. 26 Purchases 50 103 5,150 Totals 141 $14,160 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 $ $ Cost of goods sold $ LINK TO TEXT For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold. FIFO LIFO The sum of ending inventory and cost of goods sold $ Click if you would like to Show Work for this question: Open Show Work

Answer 1

	FIFO	LIFO
The ending inventory at September 30	$2,060	$1,900
Cost of goods sold	$12,100	$12,260
	FIFO	LIFO
The sum of ending inventory and cost of goods sold ($2,060 + $12,100); ($1,900 + $12,260)	$14,160	$14,160

Working notes:

Sept. 1 Inventory	26
Add: Purchases -
Sept. 12	45
Sept. 19	20
Sept. 26	50
Total units available	141
Less: Units sold	121
Units in Ending Inventory	20
FIFO:	Units (a)	Unit Cost (b)	Total Cost (a*b)
Ending Inventory from -
Sept. 26 Purchases	20	$103	$2,060
Cost of Ending Inventory under FIFO	20		$2,060
Cost of goods sold from -
Sept. 1 Inventory	26	$95	$2,470
Sept. 12 Purchases	45	$100	$4,500
Sept. 19 Purchases	20	$102	$2,040
Sept. 26 Purchases (50 - 20)	30	$103	$3,090
Cost of goods sold under FIFO	121		$12,100
LIFO:	Units (a)	Unit Cost (b)	Total Cost (a*b)
Ending Inventory from -
Sept. 1 Inventory	20	$95	$1,900
Cost of Ending Inventory under LIFO	20		$1,900
Cost of goods sold from -
Sept. 26 Purchases	50	$103	$5,150
Sept. 19 Purchases	20	$102	$2,040
Sept. 12 Purchases	45	$100	$4,500
Sept. 1 Inventory (26 - 20)	6	$95	$570
Cost of goods sold under LIFO	121		$12,260