Boarders sells a snowboard, Xpert, that is popular with snowboardenthusiasts. Be
ID: 2433807 • Letter: B
Question
Boarders sells a snowboard, Xpert, that is popular with snowboardenthusiasts. Below is information relating to Boarders’spurchases of Xpert snowboards during September. During the samemonth, 121 Xpert snowboards were sold. Boarders uses a periodicinventory system.
Date Explanation Units Unit Cost TotalCost
Sept. 1 Inventory 26 $97 $ 2,522
Sept. 12 Purchases 45 102 4,590
Sept. 19 Purchases 20 104 2,080
Sept. 26 Purchases 50 105 5,250
Totals 141 $ 14,442
Instructions
(a) Compute the ending inventory at September 30 and cost of goodssold using the FIFO and LIFO methods. Prove the amount allocated tocost of goods sold under each method.
(b) For both FIFO and LIFO, calculate the sum of endinginventory and cost of goods sold. What do you notice about theanswers you found for each method?
Please Show All Work, Thank You
Explanation / Answer
FIFO
LIFO
$2,100
$1,940
$12,342
$14,442
$14,442
(b) For both FIFO and LIFO, calculate the sum of endinginventory and cost of goods sold. What do you notice about theanswers you found for each method?
FIFO
LIFO
20 units from September 26 purchase 20 x $105$2,100
20 units from September 1 purchase 20 x $97$1,940
Cost of Goods Sold ($2,522 + $4,590 + $2,080 + $5,250 -$2,100)$12,342
Cost of Goods Sold ($2,522 +$4,590 + $2,080 + $5,250 - $1,940) $12,502 Total Purchases$14,442
$14,442