Buffalo Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Buffalo Corp.’s purchases of EZslide snowboards during September. During the same month, 94 EZslide snowboards were sold. Buffalo Corp. uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 11 $110 $ 1,210 Sept. 12 Purchases 44 113 4,972 Sept. 19 Purchases 48 114 5,472 Sept. 26 Purchases 21 115 2,415 Totals 124 $14,069 (a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending inventory at September 30 $ $ $ (b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods.

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Dryomys Dryomys · Answer 1 · 2019-11-22T08:18:03+01:00

Answer:

(a) $3,441 ; $3,357 ; $3,404

(b) $10,628 ; $10,712 ; $10,665

Explanation:

(a)

Ending inventory units = 124 units - 94 units

= 30 units

Ending inventory under FIFO:

= (21 units × $115) + (9 units × $114)

= $3,441

Ending inventory under LIFO:

= (11 units × $110) + (19 units × $113)

= $3,357

Weighted average unit cost:

= $14,069 ÷ 124 units

= $113.460

Ending inventory under weighted average:

= 30 units × $113.460

= $3,404

(b)

Cost of goods sold:

= Cost of purchases and beginning inventory - Ending inventory

Under FIFO, the cost of goods sold are as follows:

= $14,069 - $3,441

= $10,628

Under LIFO, the cost of goods sold are as follows:

= $14,069 - $3,357

= $10,712

Under weighted average, the cost of goods sold are as follows:

= 94 units × $113.460

= $10,665