Acc280 Financial Accounting: E6-17 Boarders sells a snowboard Xpert

Acc280 Financial Accounting
E6-17
Boarders sells a snowboard Xpert, that is popular with snowboard enthusiasts. Below is information relating to Boarder's purchases of Xpert snowboards during September. During the same month, 121 Xpert snowboards were sold.
Date Explanation Units Unit Cost Total Cost
1-Sep Inventory 26 97.00 2,522
12-Sep Purchases 45 103.00 4,635
19-Sep Purchases 20 107.00 2,140
26-Sep Purchases 50 112.00 5,600
     Totals 141 14,897

Additional data regarding Boarders’ sales of Xpert snowboards are provided below. Assume that Boarders uses a perpetual inventory system.
Date Units Unit Price Total Cost
Sep 5 Sale 12 199.00 2,388
Sep 16 Sale 50 199.00 9,950
Sep 29 Sale 59 209.00 12,331
     Totals 121 24,669

Instructions:
a. Compute ending inventory at September 30 using FIFO, LIFO, and average cost. (Round unit average cost to 2 decimal places. Use the rounded amounts for subsequent calculations. Round all other calculations and final answers to 0 decimal places.)
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?
Powered by