Delmott sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Be
ID: 2501512 • Letter: D
Question
Delmott sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Delmott's purchases of Xpert snowboards during September. During the same month, 101 Xpert snowboards were sold. Delmott uses a periodic inventory system. Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.) The ending inventory at September 30 using the FIFO The ending inventory at September 30 using the LIFOs The ending inventory at September 30 using the average-cost Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to O decimal places, e.g. 125.)Explanation / Answer
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CLOSEING INVENTORY AT SEPTEMBER BY USEING FIFO
TOTAL OF OPENING STOCK AND PURCHASE OTHE MONTH = 128 UNITS
SALES FOR THE MONTH = (101 UNITS)
CLOSING STOCK = 27 UNITS
SALE FOR THE MONTH OF 101 UNITS IS FROM = FULL OF OPENING STOCK(13) + SEPT 12 PURCHASE(43) + PART OF SEPT 19 PURCHASE(45)
SO THE CLOSING STOCK OF 27 UNITS CONSISTS OF = PART OF SEPT 19 PURCHASE(7) + SEPT 26 PURCHASE(20)
VALUE OF CLOSING INVENTORY
7 UNITS OF SEPT 19 (7UNITS * $107) = $749
20 UNITS OF SEPT 26 PURCHASE (20 UNITS * $112) = $2240
TOTAL VALUE OF CLOSING STOCK =$2989
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CLOSEING INVENTORY AT SEPTEMBER BY USEING LIFO
TOTAL OF OPENING STOCK AND PURCHASE OTHE MONTH = 128 UNITS
SALES FOR THE MONTH = (101 UNITS)
CLOSING STOCK = 27 UNITS
SALE FOR THE MONTH OF 101 UNITS IS FROM = FULL OF SEPT 26 PURCHASE(20) + SEPT 19 PURCHASE(52) + PART OF SEPT 12 PURCHASE(29)
SO THE CLOSING STOCK OF 27 UNITS CONSISTS OF = PART OF SEPT 12 PURCHASE(14) + FULL OF OPENING STOCK(13)
VALUE OF CLOSING INVENTORY
14 UNITS OF SEPT 12 (14UNITS * $106) = $1484
13 UNITS OF OPENING STOCK (13 UNITS * $102) = $1326
TOTAL VALUE OF CLOSING STOCK =$2810
CLOSEING INVENTORY AT SEPTEMBER BY USEING AVERAGE COST
TOTAL OF OPENING STOCK AND PURCHASE OTHE MONTH = 128 UNITS
SALES FOR THE MONTH = (101 UNITS)
CLOSING STOCK = 27 UNITS
AVERAGE COST OF A INVENTORY = TOTAL COST OF THE INVENTORY / TOTAL UNITS
=$13688 / 128 UNITS
=$106.9375
TOTAL VALUE OF CLOSEING INVENTORY OF 27 UNITS ( 27UNITS * $ 106.9375) = $2887.3125
COST OF GOODS SOLD= OPENING STOCK + NET PURCHASE - CLOSEING STOCK
CGS UNDE FIFO METHOD= $1326 + $12362 - $2989
= $10699
CGS UNDE LIFO METHOD= $1326 + $12362 - $2810
= $10878
CGS UNDE AVERAGE COST METHOD= $1326 + $12362 - $2887.3125
= $10800.6875
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