Question

un nand at July 31. Instructions a) Calculate the ending (b) For item 2 of part (a), expl (0) How do the results for ulate the ending inventory and the cost of goods sold under (1) FIFO and (2) weighted average. item 2 of part (a), explain why the weighted average unit cost is not $6.25. w do the results for part (a) differ from E6-6, where the same information for Dene Company was used in a perpetual inventory system? E6-15) Xpert Snowboards sells an ultra-lightweight snowboard that is considered to be one of the best on the A rket. Information follows for Xpert's purchases and sales of the ultra-lightweight snowboard in October Date Transaction Units Unit Purchase Price Unit Sales Price Oct. 1 Beginning inventory 25 $295 Purchase 30 Sale (42) Purchase 305 Sale (45) 460 Purchase 300 $450 35 27 Purc 20 310 Instructions 1) Calculate the cost of goods sold and the ending inventory using FIFO and weighted average, assuming Xpert uses a perpetual inventory system. (Round the weighted average cost per unit to two decimal places.) (b) What would be the ending inventory and cost of goods sold if Xpert used FIFO and weighted average in a periodic inventory system? (Round the weighted average cost per unit to two decimal places.) *E6-16 Refer to the data for Xpert Snowboards in E6-15. Assume that all of Xpert's sales are for cash and all of

just part b
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Answer 1

Correct Answer:

	FIFO	Weighted Average
Cost of Goods Sold	$               26,135.0	$                       26,297
Ending Inventory	$                 7,115.0	$                   6,952.51

Working:

Cost of Goods Available for sale
		Units	Cost per unit	value
Beginning Inventory		25	$                     295.0	$                     7,375.0
Purchases		30	$                     300.0	$                     9,000.0
Purchases		35	$                     305.0	$                   10,675.0
Purchases		20	$                     310.0	$                     6,200.0
Purchases				$                                -
Total		110		$                   33,250.0

	FIFO
A	Total Units Available for sale			110		$               33,250
	Units Sold			87
	Ending Inventory Units			23
	Valuation
	Cost of Goods Sold		25		$                       295.00	$            7,375.00
			30		$                       300.00	$                  9,000
			32		$                       305.00	$            9,760.00
B	Cost of Goods Sold		87	units		$               26,135
A-B	Ending Inventory		23	units		$              7,115.0

Weighted Average Cost Per unit
Units		(A)	110
Total Cost		(B)	$            33,250.00
Average Cost		(C=B/A)	$                  302.27

	Weighted Average
A	Total Units Available for sale			110		$         33,250.00
	Units Sold			87
	Ending Inventory Units			23
	Valuation
	Cost of Goods Sold		87		$                  302.2700	$         26,297.49
B	Cost of Goods Sold		87	units		$               26,297
A-B	Ending Inventory		23	units		$                  6,953

End of answer.

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