Note: Its under perpetual system Snoslope sells a snowboard, Xpert, that is popu
ID: 2379916 • Letter: N
Question
Note: Its under perpetual systemSnoslope sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Snoslope's purchases of Xpert snowboards during September. During the same month, 194 Xpert snowboards were sold. Snoslope uses a perpetual inventory system.
Date Explanation Units Unit Cost Total Cost
Sept. 1 Inventory 23 $165 $3,795
Sept. 12 Purchases 74 168 12,432
Sept. 19 Purchases 33 171 5,643
Sept. 26 Purchases 82
173 14,186
Totals 212
$36,056
Additional data regarding the company's sales of Xpert snowboards are provided below. Assume that Snoslope uses a perpetual inventory system.
Date Units
Sept. 5 Sales 13
Sept. 16 Sale 79
Sept. 29 Sales 102
Totals 194
Compute ending inventory at September 30 using FIFO, LIFO, and average cost. (For average cost, round unit cost to 3 decimal places, e.g. 201.255. Round final answers to 0 decimal places, e.g. 5,255.)
FIFO $
LIFO $
Average Cost $
Explanation / Answer
Ending Inventory, September 30 194 snowboards were purchased in the month of September. Beginning Inv. + Purchases = 212 snowboards = $36,056 FIFO In first in, first out we start buy calculating the goods sold from the 1st purchase (Sept.1) and work are way down. 23 at $165 = $3,795 74 at $168 = 12,432 33 at $171 = 5,643 64 at $173 = 11,072 23+74+33+64 = 194 sold units; 3795 + 12432 + 5643 + 11,072 = $32,942 Sales Beginning Inv.+Purchases= 212 snowboards= $36,056- sales 32,942= $3,114 ending balance LIFO In last in, first out we start buy calculating the goods sold from the last purchase (Sept.26) and work are way up. 82 at $173 = $14,186 33 at $171 = 5,643 74 at $168 =12,432 5 at $165 = 825 82+33+74+5 = 194 sold; 14186+5643+12432+825 = $33,086 Sales Beginning Inv.+Purchases= 212 snowboards= $36,056 - 33,086 sales = $2,970 ending inventory Average Cost The average cost is computed by dividing the total cost of goods available for sale by the total units available for sale. 212 snowboards av. for sale= $36,056 / 212 = 170.075 $170.075 x 194 sold units = 32,995 Beginning Inv.+Purchases= 212 snowboards= $36,056 - 32,995 sales = $3,061 ending inventory. Please RATE me! Any questions, comment.
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