Question

Pronghorn Corp sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Pronghorn Corp's purchases of EZslide snowboards during September. During the same month, 100 EZslide snowboards were sold. Pronghorn Corp uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory $115 $ 1,495 Sept. 12 Purchases 118 5,782 Sept. 19 Purchases 54 1196,426 Sept. 26 Purchases 24 120 2,880 Totals $16,583 (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 and final answers to 0 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, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST Cost of goods sold $ At

Answer 1

Answers Units available for 13+ 4q+ sutau sale = = 140 units units sold = 100 units Units in Ending inventory = . z 140-100 40 units =

U FIFO metod Ending inventory = 24 x $ 120) + (16 x #119) = $ 4784. (38 x $119) of goodly sold = 49 x $118) + 18X $115) + = $111799 2) LIFO method :- Ending inventory = 13 x $115) +(27¥ $ 118) = $4681 cost of goods sold = (24 x $120) + (54 x $119) + (22x $118) = $14902 (3) Average -cest method :- cost of goods available for sale units available for sale Average cost pes unit = Paxt $16,583 tyo units = $118.45 perunit. . Ending inventory a $118.45 per unit x 40 units = $4738 cost of goods sold= $ 118.45 per unit x 100 units $ 14845