Question

Waterway Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Waterway Corp.'s purchases of EZ slide snowboards during September. During the same month, 108 EZslide snowboards were sold. Waterway Corp. uses a periodic inventory system. Date Units Unit Cost Total Cost 1,100 5,989 Sept. 1 Sept. 12 Sept. 19 Sept. 26 Explanation Inventory Purchases Purchases Purchases Totals 6,156 $15,890 (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,.. 125.153 and final answers to O decimal places, e.g. 125.) DARE.ROST

Answer 1

LIFO method states that goods purchased later will be sold first

The records are updated at the end of the period under periodic inventory system

Units in ending inventory = 140-108

= 32 units

Ending Inventory as per LIFO = 10*110+22*113

= $3,586

Cost of goods sold = Total cost of goods available – Ending Inventory

LIFO = 15,890 – 3,586 = $12,304

Average Cost = 15,890-3632 = $12,258