Question

AP Mather sells a snowboard, EZ slide, that is popular with snowboard enthusiasts. Below is information relating to Mather's purchases of EZ slide snowboards during September. During the same month, 102 EZslide snowboards were sold. Mather uses a periodic inventory system. Compute inventory and cost of goods sold using periodic FIFO, LIFO, and average-cost. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 12 $100 $ 1,200 Sept. 12 Purchases 45 103 4,635 Sept. 19 Purchases 50 104 5,200 Sept. 26 Purchases 20 105 2,100

Answer 1

Answer:

Method   Ending Inventory // COGS

W/A      2,585.75  //  10,549.25

FIFO     2,620     //    10,515

LIFO     2,539    //     10,596

Explanation:

sales: 102 units

Sept. 1 Inventory         12 units $100  $  1,200

Sept. 12 Purchases    45 units $103  $  4,635

Sept. 19 Purchases    50 units $104  $  5,200

Sept. 26 Purchases   20 units $105  $  2, 100

Availalbe for sale      127 units           $ 13, 135

Ending Invenotry     127 - 102 = 25 units

COGS will be calcualte as the difference between the cost of goods and the untis at ending inventory.

Weigthed average:

$13,135 / 127 units = 103,42519685 = 103.43 cost per unit

Ending Inventory: 25 units x $ 103.43 = $ 2.585,75

COGS : 13,135 - 2,585.75 = 10,549,25

FIFO

We sold the first, the last are ending invenotry

20 x 105 = 2,100 september 26th

 5 x 104 =    520 september 19th

Ending      2,620

COGS 13,135  -  2,620 = 10,515

LIFO

We sold the last, the first are ending inventory

12 x 100 = 1,200 September   1st

13 x 103  = 1,339 September 12th

Ending      2,539

COGS  13,135 - 2,620 = 10,596