Information about Linda”s Boards is presented in E6 4. Additional data regarding Linda”s sales of Xpert snowboards are provided below. Assume that Linda”s uses a perpetual inventory system.
|
Date |
Units |
Unit Price |
Total Revenue |
|
|
Sept. 5 |
Sale |
12 |
$199 |
$ 2,388 |
|
Sept. 16 |
Sale |
50 |
199 |
9,950 |
|
Sept. 29 |
Sale |
59 |
209 |
12,331 |
|
Totals |
121 |
$24,669 |
Instructions
(a) Compute ending inventory at September 30 using FIFO, LIFO, and moving average cost.
(b) Compare ending inventory using a perpetual inventory system to ending inventory using a periodic inventory system .
(c) Which inventory cost flow method (FIFO, LIFO) gives the same ending inventory value under both periodic and perpetual? Which method gives different ending inventory values?