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    Compute FIFO and LIFO Methods

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    Sherpers sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is
    information relating to Sherpers's purchases of Xpert snowboards during September. During the same month, 124 Xpert snowboards were sold. Sherpers uses a periodic inventory system.
    Date Explanation Units Unit Cost Total Cost
    Sept. 1 Inventory 26 $ 97 $ 2,522
    Sept. 12 Purchases 45 102 4,590
    Sept. 19 Purchases 20 104 2,080
    Sept. 26 Purchases 50 105 5,250
    Totals 141 $14,442

    Instructions
    (a) Compute the ending inventory at September 30 using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method.

    (b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold.
    What do you notice about the answers you found for each method?

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    https://brainmass.com/business/inventory/compute-fifo-and-lifo-methods-118789

    Solution Preview

    a)
    Date Explanation Units Unit Cost Total Cost
    Sept. 1 Inventory 26 $ 97 $ 2,522
    Sept. 12 Purchases 45 102 4,590
    Sept. 19 Purchases 20 104 2,080
    Sept. 26 Purchases 50 105 ...

    Solution Summary

    This solution computes ending inventory and the sum of each ending inventory.

    $2.49

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