Exercise 6-3 Teal Mountain Inc. sells a snowboard, EZslide, that is popular with
ID: 2512364 • Letter: E
Question
Exercise 6-3 Teal Mountain Inc. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Teal Mountain Inc.'s purchases of EZslide snowboards during September. During the same month, 98 EZslide snowboards were sold. Teal Mountain Inc, uses a periodic inventory system. Date Sept. 1 Sept. 12 Sept. 19 Sept. 26 Explanation Units Unit Cost Total Cost $1,212 4,680 5,355 1,908 413,155 Inventory 12 45 51 18 126 $101 104 105 106 Totals (al) 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, c.g 125.) FIFO LIFO AVERAGE-COST The ending inventory at September 30 s (a2) Compute the cost of goods sold 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 Cost of goods sold $Explanation / Answer
Average cost=13155/126= $104.405 a1 FIFO 2958 =(18*106)+(10*105) LIFO 2876 =(12*101)+(16*104) Average-cost 2923 =28*104.405 a-2 Cost of goods sold: FIFO 10197 =13155-2958 LIFO 10279 =13155-2876 Average-cost 10232 =13155-2923