Question

Pharoah Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Pharoah Company’s purchases of EZslide snowboards during September. During the same month, 102 EZslide snowboards were sold. Pharoah Company uses a periodic inventory system.

Date		Explanation		Units		Unit Cost		Total Cost
Sept. 1		Inventory		14		$120		$ 1,680
Sept. 12		Purchases		52		123		6,396
Sept. 19		Purchases		60		124		7,440
Sept. 26		Purchases		24		125		3,000
		Totals		150				$18,516

(a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		AVERAGE-COST
The ending inventory at September 30		$Enter a dollar amount		$Enter a dollar amount		$Enter a dollar amount

(b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.)

		FIFO		LIFO		AVERAGE-COST
Cost of goods sold		$Enter a dollar amount		$Enter a dollar amount		$Enter a dollar amount

Answer 1

(a) Compute the ending inventory at September 30 using the FIFO, LIFO, and average-cost methods as follows:
	FIFO	LIFO	Average-Cost
The ending inventory at September 30	5976	5862	5925
(b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods.
	FIFO	LIFO	Average-Cost
Cost of goods sold	12540	12654	12591

Above figures have been calculated in the following manner:

(a) Compute the ending inventory at September 30 using the FIFO, LIFO, and average-cost methods as follows:
	FIFO	LIFO	Average-Cost
The ending inventory at September 30	=(24*125)+(24*124)	=(14*120)+(34*123)	=(18516/150)*48
(b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods.
	FIFO	LIFO	Average-Cost
Cost of goods sold	=18516-5976	=18516-5862	=18516-5925