Question

Buffalo Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Buffalo Corp's purchases of EZslide snowboards during September. During the same month, 103 EZslide snowboards were sold. Buffalo Corp. uses a periodic inventory system. Explanation Units Unit Cost Total Cost Sept. 1 Inventory $110 $ 1,540 Sept. 12 Purchases 113 5,650 Sept. 19 Purchases 114 6,156 Sept. 26 Purchases 2,530 Totals $15,876 (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, eg, 125,153 and final answers to decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending inventory at September 30 $ (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, eg. 125.153 and final answers to O decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST Cost of goods sold $

Answer 1

a) Ending inventory = 140-103 = 37 Units

	FIFO	LIFO	Average cost
The ending inventory at September 30	(22*115+15*114) = 4240	(14*110+23*113) = 4139	15876/140*37 = 4196

b) Cost of goods sold

	FIFO	LIFO	Average cost
Cost of goods sold	15876-4240 = 11636	15876-4139 = 11737	15876-4196 = 11680