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Inventory calculations in Financial Accounting

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 $

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 ...

Solution Summary

The solution explains some inventory calculations using LIFO and FIFO

$2.19