Question

Orlole Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Oriole Company's purchases of EZslide snowboards during September. During the same month, 103 EZslide snowboards were sold. Date Explanation Units Unit Cost 14 45 Sept. 1 Sept. 12 Sept. 19 Sept. 26 Inventory Purchases Purchases Purchases $102 105 106 Total Cost $1,428 4,725 5.194 2,675 133 $14,022 Additional data regarding the company's sales of EZslide snowboards are provided below. Assume that Oriole Company uses a perpetual inventory system. da Date Units Sept. 5 Sale Sept. 16 Sale 49 Sept. 29 Sale Totals Calculate the average unit cost. (Round answers to 3 decimal places eg. 5.125) OD 0 DO. -16583/140

Answer 1

1.

September 1	102
September 5	102
September 12	104.7
September 16	104.7
September 19	105.974
September 26	106.316
September 29	106.316

2.

	FIFO	LIFO	Average cost
The ending inventory	3210	3176	3180
	[30*107]

Workings:

Weighted average cost
	Goods Purchased			Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	Total cost	Units	# of units	Total cost	Units	# of units	Total cost
Sept 1							14	102	1428
Sept 5				9	102	918	5	102	510
Sept 12							5	102	510
							45	105	4725
							50	104.7	5235
Sept 16				49	104.7	5130.3	1	104.7	104.7
Sept 19							1	104.7	104.7
							49	106	5194
							50	105.974	5298.7
Sept 26							50	106	5298.7
							25	107	2675
							75	106.316	7973.7
Sept 29				45	106.316	4770	30	106.316	3180

LIFO
	Goods Purchased			Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	Total cost	Units	# of units	Total cost	Units	# of units	Total cost
Sept 1							14	102	1428
Sept 5				9	102	918	5	102	510
Sept 12							5	102	510
							45	105	4725
				4	102	408
Sept 16				45	105	4725	1	102	102
Sept 19							1	102	102
							49	106	5194
							1	102	102
Sept 26							49	106	5194
							25	107	2675
				20	106	2120	29	106	3074
Sept 29				25	107	2675	1	102	102