Compute the ending inventory


Discussion:

Andreas Boards sells a snowboard Xpert, that is popular with snowboard enthusiasts. Below is information relating to Andreas purchases of Xpert snowboards during September. During the same month, 121 Xpert snowboards were sold. Andreas uses a periodic inventory system.

Date Explanation Units Unit Cost Total Cost

Sept 1 Inventory 26 $ 97 $2,522
Sept 12 Purchases 45 105 4,725
Sept 19 Purchases 20 108 2,160
Sept 26 Purchases 50 109 5,450
Totals 141 $14,857

Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods.

FIFO LIFO
Ending Inventory $ $
Cost of goods sold $ $

For both FIFO and LIFO, compute the sum of cost of goods sold and ending inventory. What do you notice about the result for each method.

(Which one is correct)
the sums for FIFO and LIFO are equal

the sum is greater for LIFO

the sum is greater for FIFO

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Compute the ending inventory
Reference No:- TGS02032079

Expected delivery within 24 Hours