Exercise 6-4 (Part Level Submission) Linda’s Boards sells a snowboard, Xpert, th
ID: 2470184 • Letter: E
Question
Exercise 6-4 (Part Level Submission)
Linda’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Linda’s purchases of Xpert snowboards during September is shown below. During the same month, 212 Xpert snowboards were sold. Linda’s uses a periodic inventory system.
Date
Explanation
Units
Unit Cost
Total Cost
Sept. 1
Inventory
46
$98
$ 4,508
Sept. 12
Purchases
79
105
8,295
Sept. 19
Purchases
35
109
3,815
Sept. 26
Purchases
88
115
10,120
Totals
248
$26,738
(a)
Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods.
FIFO
LIFO
The ending inventory at September 30
$
$
Cost of goods sold
$
$
Explanation / Answer
Answer
Figures in $
Particulars
Amount
Total units available for sale
a
248
Units sold
b
212
Inventory (a-b)
36
FIFO method
Figures in $
Particulars
Units
Price per unit
Total
A
B
A*B
Inventory
c
36
115
4140
Total
d
248
26738
Cost of goods sold (d-c)
212
22598
LIFO method
Figures in $
Particulars
Units
Price per unit
Total
A
B
A*B
Inventory
c
36
98
3528
Total
d
248
26738
Cost of goods sold (d-c)
212
23210
Figures in $
Particulars
Amount
Total units available for sale
a
248
Units sold
b
212
Inventory (a-b)
36