Exercise 6-15 (Part Level Submission) Powder, Inc. sells an Xpert snowboard that

Question

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:

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:

(b) Determine the cost of goods sold and ending inventory using (1) FIFO and (2) average cost, assuming Powder uses a periodic inventory system. (Round answers to 0 decimal places, e.g. 5,275. FIFO Average Cost of goods sold s (Alt + A) Ending inventory

Explanation / Answer

Periodic Inventory system

1. FIFO

(2) Average

Note: Unrounded numbers have been used in the average cost calculation, although the numbers havebeen rounded to the nearest cent for presentation purposes. Because of this, some amounts may notappear to multiply exactly because of the rounding in the presentation.

Ending inventory = 42 × 306.13 =$12857.46

Cost of goods sold = $40,103 – $12,857.46= $ 27,245.54

FIFO Average Cost of the ending inventory 27039 12857.46 Cost of goods sold 10364 27245.54

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---