Question

AP Mather sells a snowboard, EZ slide, that is popular with snowboard enthusiasts. Below is information relating to Mather's purchases of EZ slide snowboards during September. During the same month, 102 EZslide snowboards were sold. Mather uses a periodic inventory system. Compute inventory and cost of goods sold using periodic FIFO, LIFO, and average-cost. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 12 $100 $ 1,200 Sept. 12 Purchases 45 103 4,635 Sept. 19 Purchases 50 104 5,200 Sept. 26 Purchases 20 105 2,100

Answer 1

Answer:

Method   Ending Inventory // COGS

W/A      2,585.75  //  10,549.25

FIFO     2,620     //    10,515

LIFO     2,539    //     10,596

Explanation:

sales: 102 units

Sept. 1 Inventory         12 units $100  $  1,200

Sept. 12 Purchases    45 units $103  $  4,635

Sept. 19 Purchases    50 units $104  $  5,200

Sept. 26 Purchases   20 units $105  $  2, 100

Availalbe for sale      127 units           $ 13, 135

Ending Invenotry     127 - 102 = 25 units

COGS will be calcualte as the difference between the cost of goods and the untis at ending inventory.

Weigthed average:

$13,135 / 127 units = 103,42519685 = 103.43 cost per unit

Ending Inventory: 25 units x $ 103.43 = $ 2.585,75

COGS : 13,135 - 2,585.75 = 10,549,25

FIFO

We sold the first, the last are ending invenotry

20 x 105 = 2,100 september 26th

 5 x 104 =    520 september 19th

Ending      2,620

COGS 13,135  -  2,620 = 10,515

LIFO

We sold the last, the first are ending inventory

12 x 100 = 1,200 September   1st

13 x 103  = 1,339 September 12th

Ending      2,539

COGS  13,135 - 2,620 = 10,596

Answer 2

The Ending Inventory and the Cost of Goods Sold using the periodic system are as follows:

                                             FIFO            LIFO       Average-Cost

Ending Inventory            $2,620         $2,539        $2,585.60

Cost of Goods Sold      $10,515        $10,596      $10,549.40

Data and Calculations:

Sales of EZ slide = 102 units

Date        Explanation       Units      Unit Cost     Total Cost

Sept. 1     Inventory               12           $100            $ 1,200

Sept. 12  Purchases             45             103               4,635

Sept. 19  Purchases             50             104              5,200

Sept. 26 Purchases             20             105               2,100

Total                                    127                               $13,135

Sales                                   102

Ending inventory                25 (127 - 102)

• Average cost = $103.425 ($13,135/127)

FIFO Method:

Ending Inventory = $2,620 (5 x $104) + (20 x $105)

Cost of goods sold = $10,515 ($13,135 - $2,620)

LIFO Method:

Ending Inventory = $2,539 (12 x $100) + (13 x $103)

Cost of goods sold = $10,596 ($13,135 - $2,539)

Average-cost Method:

Ending Inventory = $2,585.60(25 x $103.425)

Cost of goods sold = $10,549.40 (102 x $103.425)

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