Elsa’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusias
ID: 2553500 • Letter: E
Question
Elsa’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa’s purchases and sales of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Additional data regarding Elsa’s sales of Xpert snowboards are provided below. Elsa’s uses a perpetual inventory system.
Date
Explanation
Units
Unit Cost
Total Cost
26
$97
$ 2,522
45
102
4,590
20
104
2,080
50
105
5,250
141
$14,442
Calculate moving average cost at Sept 1, 5, 12, 16, 19, 26 & 29.
Compute ending inventory at September 30 using FIFO, LIFO, and moving-average cost.
Compare ending inventory using a perpetual inventory system to ending inventory using a periodic inventory system.
Compare ending inventory using a perpetual inventory system to ending inventory using a periodic inventory system.
Date
Explanation
Units
Unit Cost
Total Cost
Sept. 1 Inventory26
$97
$ 2,522
Sept. 12 Purchases45
102
4,590
Sept. 19 Purchases20
104
2,080
Sept. 26 Purchases50
105
5,250
Totals141
$14,442
Explanation / Answer
Compare ending inventory using a perpetual inventory system to ending inventory using a periodic inventory system.
Periodic Perpetual Ending Inventory FIFO 20*105 = 2100 2100 Ending Inventory LIFO 20*97 = 1940 1940Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.