Mountain Country, Inc. sells an Xpert skateboard that is popular with skateboard

Question

Mountain Country, Inc. sells an Xpert skateboard that is popular with skateboards an Xpert skateboard that is popular with skateboards enthusiasts. The following information shows Mountain Country's purchases and sales of Xpert skateboards during February: The 8 Purchases 15 19 Purchases 22 Sales 25 Purchases 31 $298 23 303 (39) 41 309 (46) Sales $491 Your answer is partially correct. Try again. the cost of goods sold and ending inventory using (1) FIPO and (2) average cost assuming Mountain Country uses a perpetual inventory system (Round answers to ded w Cost of goods sold 129372.00 Ending inventory Determine the cost of goods sold and ending inventory using (1) FIFO and (2) average cosot, assuming Mountain Country uses a penodic inventory system. (Round answers to o decima Average Cost of goods sold Ending inventory s

Explanation / Answer

Answer a. FIFO - Perpetual Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Feb                   31           298.00             9,238 8-Feb                   23                  303        6,969.00                   31           298.00             9,238                   23           303.00             6,969                   54           16,207 15-Feb                   31           298.00              9,238                   15           303.00             4,545                     8           303.00              2,424                   39            11,662 19-Feb                   41                  309      12,669.00                   15           303.00             4,545                   41           309.00           12,669                   56           17,214 22-Feb                   15           303.00              4,545                   10           309.00             3,090                   31           309.00              9,579                   46            14,124 25-Feb                   31                  314        9,734.00                   10           309.00             3,090                   31           314.00             9,734                   41           12,824 Total                   95      29,372.00                   85            25,786 Average Cost - Perpetual Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 1-Feb                   31           298.00             9,238 8-Feb                   23                  303        6,969.00                   31           298.00             9,238                   23           303.00             6,969                   54           300.13           16,207 15-Feb                   39           300.13            11,705                   15           300.13             4,502 19-Feb                   41                  309      12,669.00                   15           300.13             4,502                   41           309.00           12,669                   56           306.62           17,171 22-Feb                   46           306.62            14,105                   10           306.62             3,066 25-Feb                   31                  314        9,734.00                   10           306.62             3,066                   31           314.00             9,734                   41           312.20           12,800 Total                   95      29,372.00                   85            25,810 FIFO Average Cost of Goods Sold            25,786            25,810 Ending Inventory            12,824            12,800 Answer b. - Periodic Cost of Goods Available for Sale Date Explanation Units Unit Cost Total Cost 1-Feb Beg. Inv.                     31            298.00             9,238 8-Feb Purchases                     23            303.00             6,969 19-Feb Purchases                     41            309.00           12,669 25-Feb Purchases                     31            314.00             9,734 Total                  126           38,610 Sales: Date Explanation Units Unit Cost Total Cost 15-Feb sales                     39            491.00           19,149 22-Feb sales                     46            498.00           22,908 Total                     85           42,057 Ending Inventory (In Units) = 126 Units - 85 Units = 41 Units FIFO Method - Periodic Value of Ending Inventory Date Units Unit Cost Total Cost 25-Feb                   31                  314              9,734 19-Feb                   10            309.00              3,090 Total                   41            12,824 Cost of Goods Sold: Beginning Inventory              9,238 Add: Purchases            29,372 Cost of Goods Available for Sale            38,610 Less: Ending Inventory            12,824 Cost of Goods Sold            25,786 Average Cost - Periodic Average Cost Per Unit = $38,610 (Cost of goods available for sale) / 126 Units ( Units Available for Sale) Average Cost Per Unit = $306.43 per Unit (Approx.) Value of Ending Inventory = 41 Units X $306.43 per unit Value of Ending Inventory = $12,563.57 or say $12,564 (Approx.) Cost of Goods Sold: Beginning Inventory              9,238 Add: Purchases            29,372 Cost of Goods Available for Sale            38,610 Less: Ending Inventory            12,564 Cost of Goods Sold            26,046 FIFO Average Cost of Goods Sold            25,786            26,046 Ending Inventory            12,824            12,564

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