Snoslope 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, 118 Xpert snowboards were sold. Snoslope uses a periodic inventory system.
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
|
Sept. 1 |
Inventory |
14 |
$ 100 |
$ 1,400 |
|
Sept. 12 |
Purchases |
45 |
102 |
4,590 |
|
Sept. 19 |
Purchases |
20 |
104 |
2,080 |
|
Sept. 26 |
Purchases |
50 |
105 |
5,250 |
|
Totals |
129 |
$ 13,320 |
Instructions
(a) Compute the ending inventory at September 30 using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method.
(b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold. What do you notice about the answers you found for each method?