Question

Exercise 6-05 a-b (Part Level Submission)

Splish Brothers’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Splish Brothers’s purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Splish Brothers’s uses a periodic inventory system.

Date		Explanation		Units		Unit Cost		Total Cost
Sept. 1		Inventory		26		$102		$ 2,652
Sept. 12		Purchases		45		103		4,635
Sept. 19		Purchases		20		108		2,160
Sept. 26		Purchases		50		114		5,700
		Totals		141				$15,147

(a)

Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods.

		FIFO		LIFO
The ending inventory at September 30		$		$
Cost of goods sold		$		$

Answer 1

Total cost Sep 1 Sep 12 Sep 19 Sep 26 Dan T20 Units available : ate Explanation Unit cost Proventory 26 $ 102 $2652 Purchases 45 103 4635 Purchases 20 108 2160 Purchases 50 114 5700 Totals 141 $ 15147 During the month 191 xpert snowboards were sold. Total cost Sep 1 103 $ 2652 4635 2160 → Fifo Computation of cost of Goods sold Date Explanation Unit Cost Inventory 26 $ 102 Sep 1a Purchase 45 Purchase 108 Purchase 30 114 121 computation of Ending Inventory. Date Explanation Unit cost Sep 26 Purchase 20 114 20 Sep 19 Sep 26 3420 12861 Total cost 2280 2280 = 12867 The cost of Goods sold as per FIFO Ending Inventory is Inventory is 20 units @ M4 each = 2280 Fifo LIFO Ending S Aventory at sep 30 $ 2280 $ 2040 cost of Goods sold $ 12867 | $13107

* LIFO Total cost 50 14 5700 do 108 Compectation of cost of Goods sold. Date Explanation Unit cost Sep 26 Purchases Purchases Purchases 45 103 Snventory 10a 121 Computation of Ending Sorentory Date Explanation Unit cost Sep! Inventory sep 19 Sep 12 Sep I 2160 4635 612 (3107 6. Total cost 2040 20 102 2040 Lifo = 13107 The cost of Goods sold as per Ending Inventory is ao Units @ 102 each = 2040