Inventory calculations in Financial Accounting
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Snoslope sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Snoslope's purchases of Xpert snowboards during September. During the same month, 118 Xpert snowboards were sold. Snoslope uses a periodic inventory system.
Date Explanation Units Unit Cost Total Cost
Sept. 1 Inventory 14 $95 $1,330
Sept. 12 Purchases 45 102 4,590
Sept. 19 Purchases 20 104 2,080
Sept. 26 Purchases
50
111
5,550
Totals
129
$13,550
(a) Compute the ending inventory at September 30 using the FIFO and LIFO methods.
FIFO Ending Inventory $ 1221
LIFO Ending Inventory $
(b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold.
FIFO COGS $
LIFO COGS $
FIFO COGS + Ending Inventory $
LIFO COGS + Ending Inventory $
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Solution Summary
The solution explains some inventory calculations using LIFO and FIFO
Solution Preview
(a) Compute the ending inventory at September 30 using the FIFO and LIFO methods.
In FIFO the ending inventory would be the latest purchases. Ending inventory is 129-118 = 11 ...
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