Question

Question 2 Splish Brothers Inc. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Splish Brothers Inc.'s purchases of EZside snowbo same month, 109 EZslide snowboards were sold. Splish Brothers Inc. uses a periodic inventory system. Units Unit Cost Date Explanation Total Cost 11 $119 Sept. 1 $1,309 Inventory Sept. 12 Sept. 19 50 122 6,100 Purchases 58 123 7,134 Purchases 23 2,852 Sept. 26 Purchases 124 142 $17,395 Totals (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 a places, e.g. 125.) AVERAGE-COST FIFO LIFO The ending inventory at September 30 %24 (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 places, e.g. 125.) AVERAGE-COST LIFO FIFO Cost of goods solds LINK TO VIDEO LINK TO TEKT Question Attempts: 0 of S used MacBook Air >> F10 F7 30 F3 F4 FI F2 & 24 #3 9. 7. 4. 2

Answer 1

a)

particulars	units	FIFO	LIFO	AVERAGE COST
purchase cost and opening stock as given in question	142	17395	17395	17395
less:items sold-109 units	109	13313	13402	13352.5
		(11*119+50*122+48*123)	(23*124+58*123+28*122)	(17395/142*109)
ending inventory	33	4082	3993	4042.5

note:the calculations are based on the following assumptions:

under FIFO method ,the sale will happen from the opening inventory and succeedingly received items,while under LIFO method it is just reverce to FIFO which consisit of goods lastly purchased and the latest purchases also,But in average cost method it will consider average cost of all the inventory and estimated to propotionate.

b)

particulars	units	FIFO	LIFO	AVERAGE COST
purchase cost and opening stock as given in question	142	17395	17395	17395
cost of goods sold	109	13313	13402	13352.5
		(11*119+50*122+48*123)	(23*124+58*123+28*122)	(17395/142*109)