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Deffense
14 days ago
10

AP Mather sells a snowboard, EZ slide, that is popular with snowboard enthusiasts. Below is information relating to Mather's pur

chases of EZ slide snowboards during September. During the same month, 102 EZslide snowboards were sold. Mather uses a periodic inventory system. Compute inventory and cost of goods sold using periodic FIFO, LIFO, and average-cost. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 12 $100 $ 1,200 Sept. 12 Purchases 45 103 4,635 Sept. 19 Purchases 50 104 5,200 Sept. 26 Purchases 20 105 2,100
Business
1 answer:
arsen [2.9K]14 days ago
4 0

Answer:

Using the respective methods: Ending Inventory // COGS

W/A      2,585.75  //  10,549.25

FIFO     2,620     //    10,515

LIFO     2,539    //     10,596

Explanation:

Sales: 102 units

Sept. 1 Inventory         12 units $100  $  1,200

Sept. 12 Purchases    45 units $103  $  4,635

Sept. 19 Purchases    50 units $104  $  5,200

Sept. 26 Purchases   20 units $105  $  2,100

Available for sale      127 units           $ 13, 135

Ending Inventory     127 - 102 = 25 units

COGS is calculated by taking the cost of goods minus the units left in ending inventory.

Weighted average:

$13,135 / 127 units = 103.42519685 = 103.43 cost per unit

Ending Inventory: 25 units x $ 103.43 = $ 2,585.75

COGS: 13,135 - 2,585.75 = 10,549.25

FIFO

First sold, last remaining items in inventory

20 x 105 = 2,100 September 26th

 5 x 104 =    520 September 19th

Remaining inventory      2,620

COGS 13,135  -  2,620 = 10,515

LIFO

Last sold, first remaining in inventory

12 x 100 = 1,200 September   1st

13 x 103  = 1,339 September 12th

Remaining inventory      2,539

COGS  13,135 - 2,620 = 10,596

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