Question

Powder, Inc. sells an Xpert snowboard that is popular with snowboards enthusiasts. The following information shows Powder’s purchases and sales of Xpert snowboards during November:

Unit Units Cost Unit Sales Price Date Transaction November 1 Beginning inventory 5 Purchases 12 Sales 19 Purchases 22 Sales 25 Purchases 34 $298 21 308 (39) 40 306 (50) 33 313 39 $471 486

Determine the cost of goods sold and ending inventory using (1) FIFO and (2) average cost, assuming Powder uses a perpetual inventory system. (Round answers to 0 decimal places, e.g. 5,275.)

Answer 1

FIFO
Date	Particulars	Units	Cost	Amount	COGS
1-Nov	Op Bal	34.00	298.00	10,132.00
5-Nov	Purchases	21.00	308.00	6,468.00
	Total	55.00		16,600.00
12-Nov	COGS	39.00		11,672.00	34*298+5*308
	Total	16.00		4,928.00
19-Nov	Purchases	40.00	306.00	12,240.00
	Total	56.00		17,168.00
22-Nov	Sales	50.00		15,332.00	16*308+34*306
	Total	6.00		1,836.00
25-Nov	Purchases	33.00	313.00	10,329.00
	Total	39.00		12,165.00
COGS	27,004.00
Ending Inventory	12,165.00
Average Cost
Date	Particulars	Units	Cost	Amount	COGS
1-Nov	Op Bal	34.00	298.00	10,132.00
5-Nov	Purchases	21.00	308.00	6,468.00
	Total	55.00	301.82	16,600.00
12-Nov	COGS	39.00	301.82	11,770.91
	Total	16.00	301.82	4,829.09
19-Nov	Purchases	40.00	306.00	12,240.00
	Total	56.00	304.81	17,069.09
22-Nov	Sales	50.00	304.81	15,240.26
	Total	6.00	304.81	1,828.83
25-Nov	Purchases	33.00	313.00	10,329.00
	Total	39.00	311.74	12,157.83
COGS	27,011.17
Ending Inventory	12,157.83