Question

Bramble Corp. began the year with 10 units of marine floats at a cost of $12 each. During the year, it made the following purchases: May 5, 32 unit at $16; July 16, 19 units at $20; and December 7, 24 units at $23. Assume there are 35 units on hand at the end of the period. Bramble uses the periodic approach.

A. Determine cost of goods sold under FIFO

B. Determine cost of goods sold under LIFO

C. Calculate the average unit cost

D. Determine the cost of goods sold under the average cost.

Shamrock, Inc. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Shamrock, Inc.’s purchases of EZslide snowboards during September. During the same month, 103 EZslide snowboards were sold. Shamrock, Inc. uses a periodic inventory system.

Date		Explanation		Units		Unit Cost		Total Cost
Sept. 1		Inventory		10		$111		$ 1,110
Sept. 12		Purchases		56		114		6,384
Sept. 19		Purchases		60		115		6,900
Sept. 26		Purchases		24		116		2,784
		Totals		150				$17,178

(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

Question:1

Cost of goods sold Under FIFO	$ 772.00	(24*23)+(11*20)
Cost of goods sold Under LIFO	$ 520.00	(10*12)+(25*16)
Avergae Unit Cost	$    18.40	1564/85
Cost of goods sold Under FIFO	$ 644.00	35*18.4

Working:

Particulars	Units	Unit Cost	Cost
Beginning Inventory	10	$                12	$                  120
Purchases 1	32	$                16	$                  512
Purchases 2	19	$                20	$                  380
Purchases 3	24	$                23	$                  552
Total Goods available for sale	85		$              1,564
Particulars	Units	Unit Cost	Cost of goods sold
Sale	50
Goods Sold [85-50]	35
Cost of goods sold Under FIFO	$ 772.00	(24*23)+(11*20)
Cost of goods sold Under LIFO	$ 520.00	(10*12)+(25*16)
Avergae Unit Cost	$    18.40	1564/85
Cost of goods sold Under FIFO	$ 644.00	35*18.4