Question

b akiya Electronica ed the specific identification method instead of the PO method, how might it aker its earnings by selectively choosing which particular players to sell to the two customers? What would Klyak's cost of goods sold be if the company wished to minimize earnings? Maximize eamings? a) Which of the two inventory methods do you recommend that Kiyak use? Explain why e old 26 102 64 Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Com Information relating to Elsa's purchases of Xpert snowboards during September is shown good below. During the same month, 121 Xpert snowboards were sold. Elsa's uses a periodic UFO. inventory system. (LO 21 Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory $ 97 $ 2.522 Sept. 12 Purchases 4,590 Sept. 19 Purchases TE 104 Sept. 26 Purchases Totals hustructions (a) Compute the ending inventory al September 30 and cont de sold using the FIFO and LIFO methods. Prove the amount allocated to cost of als soldunderach method tb For both FIFO and LIFO, calculate the sum ofending inventory and cost of goods sok What do you notice about the answers you found for each method? 2.00 los .42 O D E6.5 Ballas Couses a periodic inventory system is records show the towing for the C math of May in which 6 units were sold Units Unit Cost Total CON May Inventory 52-40 Purchases The 102 DELIBOG MacBook Air

the first question

Answer 1

Cfer on I. under units EIEO methO4 1.15suy 121 unis CCOr of goods so) 2522 26 4590 2080 102 45 104 20 3150 12342 L05 30 121 Cas of gaads sok 2. closing inventovy Recaips-155uy 141 Unib- 121 Unis unib 20 be issues ftst FIFO metholy First in Shoul ey allordingly larst Clasing inlenhory i-es go0s shall be left in 20 UNib x $ L05 2100 #Vndor Lifo metho 1 15Suay 121 UNjb Ccos of goos sol Lrer vni) COJLS) tos 50 5250 20 2080 I02 4590 582 12502 COSF

2 Clasing inven toy Recuiph 155uay 20 unih i5Sued 121 method be Shan in Lajt arcording ly earliest g00ds in elosing stack 1940 shall left Over 20U X $91 be under FIFO method C) 12342 conclusinon LIFO merhol C$) Cost of gools sold Closing stock 12561 1940 2100

By observing the prices ( 91, $L02, $104 4 LO5)y Yaise in prices, ie inf lahan the Of t case LIFO method under Flfo memod, Closing stock (left win earlest -1owu pvi Closing Stock (ieft wih lakst -highe price) Similayly under tlfo merhod, CO of goo sold represen lowr cost LIFO memal cost of goods re presen s high COSE