Exercise 6-4 Oriole Company sells a snowboard, EZslide, that is popular with sno
ID: 2606828 • Letter: E
Question
Exercise 6-4
Oriole Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Oriole Company’s purchases of EZslide snowboards during September. During the same month, 94 EZslide snowboards were sold. Oriole Company uses a periodic inventory system.
Date
Explanation
Units
Unit Cost
Total Cost
Sept. 1
Inventory
13
$108
$ 1,404
Sept. 12
Purchases
46
111
5,106
Sept. 19
Purchases
47
112
5,264
Sept. 26
Purchases
18
113
2,034
Totals
124
$13,808
(a) 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, e.g. 125.)
FIFO
?
LIFO
?
AVERAGE-COST
?
The ending inventory at September 30
(b) 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
Date
Explanation
Units
Unit Cost
Total Cost
Sept. 1
Inventory
13
$108
$ 1,404
Sept. 12
Purchases
46
111
5,106
Sept. 19
Purchases
47
112
5,264
Sept. 26
Purchases
18
113
2,034
Totals
124
$13,808
Explanation / Answer
Total goods available for sale = 124
less: units were sold = 94
Ending inventory = 30 units
FIFO
cost of goods sold at September 30 for 94 units = 13 units from beginning inventory at $108 = $1,404
=46 units from 12th spet. at $111 = 5,106
=35 units from 19th spet. at $112 = 3920
94 units = 10430
ending inventory at September 30 for 30 units = 12 units from 19th spet. at $112 = $1344
= 18 units from 26th spet. at $113 = 2,034
= $3378
LIFO
cost of goods sold at September 30 for 94 units = 18 units from 26th spet. at $113 = 2,034
= 47 units from 19th spet. at $112 = 5,264
= 29 units from 12th spet. at $111 = 3219
94 units = 10517
ending inventory at September 30 for 30 units = 17 units from 12th spet. at $111 = 1887
=13 units from beginning inventory at $108 = $1,404
= $3291
average-cost methods
AVERAGE-COST = Total cost of goods avialable for sale / (beginning inventory + purchased units)
=$13,808 / 124
= $111.355
cost of goods sold at September 30 for 94 units = 94 units * $111.355 = $10467
ending inventory at September 30 for 30 units = 30 units * $111.355 = $3341