Question

Exercise 6-05 a-b (Video) Dorothy's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Dorothy's purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Dorothy's uses a periodic inventory system Date Explanation Units Unit Cost Total Cost $ 2,470 Inventory $95 Sept. 1 26 4,590 Sept. 12 Purchases 45 102 Purchases 104 Sept. 19 20 2,080 5,250 50 Purchases Sept. 26 105 $14,390 141 Totals Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods. LIFO FIFO The ending inventory at September 30 $ $ Cost of goods sold $ $ For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold FIFO LIFO The sum of ending inventory and cost of goods sold $ $

Answer 1

Answers

• Requirement 1

	FIFO	LIFO
Ending Inventory	$      2,100.00	$              1,900.00
Cost of Goods Sold	$    12,290.00	$            12,490.00

• Requirement 2

	FIFO	LIFO
Sum of ending inventory and cost of goods sold [=cost of goods available for sale]	$      14,390.00	$      14,390.00

• Working

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	26	$                95.00	$                        2,470.00	26	$               95.00	$                 2,470.00	0	$                 95.00	$                         -
Purchases:
08-Aug	45	$              102.00	$                        4,590.00	45	$             102.00	$                 4,590.00	0	$              102.00	$                         -
18-Aug	20	$              104.00	$                        2,080.00	20	$             104.00	$                 2,080.00	0	$              104.00	$                         -
28-Aug	50	$              105.00	$                        5,250.00	30	$             105.00	$                 3,150.00	20	$             105.00	$            2,100.00
TOTAL	141		$                      14,390.00	121		$               12,290.00	20		$            2,100.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	26	$                95.00	$                        2,470.00	6	$               95.00	$                     570.00	20	$                 95.00	$            1,900.00
Purchases:
08-Aug	45	$              102.00	$                        4,590.00	45	$             102.00	$                 4,590.00	0	$              102.00	$                         -
18-Aug	20	$              104.00	$                        2,080.00	20	$             104.00	$                 2,080.00	0	$              104.00	$                         -
28-Aug	50	$              105.00	$                        5,250.00	50	$             105.00	$                 5,250.00	0	$             105.00	$                         -
TOTAL	141		$                      14,390.00	121		$               12,490.00	20		$            1,900.00