I need the answer to this please! Exercise 6-15 (Part Level Submission) Powder,
ID: 2540166 • Letter: I
Question
I need the answer to this please!
Exercise 6-15 (Part Level Submission) Powder, Inc. sells an Xpert snowboard that is popular with snowboards enthusiasts. The following information shows Powder's purchases and sales of Xpert snowboards during November: Unit Units Cost Unit Sales Price Date Transaction 31 $296 23 301 (42) 44 305 (47) 35 315 November 1 Beginning inventory 5 Purchases 12 Sales 19 Purchases 22 Sales 25 Purchases $490 484 (a) Determine the cost of goods sold and ending inventory using (1) FIFO and (2) average cost, assuming Powder uses a perpetual inventory system. (Round answers to o decimal places,e.g. 5,275.) FIFO Average Cost of goods sold Ending inventorydExplanation / Answer
FIFO Method Purchases Sales Closing balance Units Per unit cost Cost Units Per unit cost Cost Beginning inventory 31 $ 9.55 $ 296.00 31 $ 9.55 $ 296.00 Purchase 23 $ 13.09 $ 301.00 23 $ 13.09 $ 301.00 Sale 31 $ 9.55 $ 296.00 Sale 11 $ 13.09 $ 143.96 12 $ 13.09 $ 157.04 Purchase 44 $ 6.93 $ 305.00 12 $ 13.09 $ 157.04 44 $ 6.93 $ 305.00 Sales 12 $ 13.09 $ 157.04 35 $ 6.93 $ 242.61 9 $ 6.93 $ 62.39 Purchases 35 $ 9.00 $ 315.00 9 $ 6.93 $ 62.39 35 $ 9.00 $ 315.00 Total 133 $ 1,217.00 89 $ 839.61 Average method Purchases Sales Closing balance Units Per unit cost Cost Units Per unit cost Cost Beginning inventory 31 $ 9.55 $ 296.00 Purchase 23 $ 13.09 $ 301.00 54 $ 11.06 $ 597.00 Sale 42 $ 11.06 $ 464.33 12 $ 11.06 $ 132.67 Purchase 44 $ 6.93 $ 305.00 56 $ 7.82 $ 437.67 Sales 47 $ 7.82 $ 367.33 9 $ 7.82 $ 70.34 Purchases 35 $ 9.00 $ 315.00 44 $ 8.76 $ 385.34 Total 133 $ 1,217.00 89 $ 831.66 a) FIFO Average Cost of goods sold $ 839.61 $ 831.66 Ending inventory $ 377.39 $ 385.34