Question

Exercise 6-05 a-b (Part Level Submission) (Video) Dorothy's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Dorothy's purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Dorothy's uses a periodic inventory system Date Sept. 1 Sept. 12 Sept. 19 Sept. 26 Explanation Units Unit Cost Total Cost $2,470 4,590 2,080 5,250 $14,390 Inventory Purchases Purchases Purchases Totals 26 45 20 50 141 $95 102 104 105 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 Click if you would like to Show Work for this question: Show Wo

Answer 1

a) Ending Inventory using FIFO Units Purchased First are Sold first under FIFO and hence the ending inventory is valued at the latest cost of purchase Units Sold 121 Units available Unit Total Units Units in Ending Cost of Ending Date 1-Sep Opening Inventory 12-Sep Purchases 19-Sep Purchases 26-Sep Purchases (A)cost(B) Cost(A*B) sold (C) Inventory D (A-C) Inventory BD 26 45 20 30 121 26 45 20 50 141 95 2,470 4,590 1042,080 5,250 14,390 102 105 2,100 2,100 20 20 Cost of Goods Sold under FIFO (COGS) COGS Opening inventory +Purchases Ending Inventory -2,470 (4,590 2,080 +5,250) 2,100 COGS- 12,290