Question

Information about Linda’s Boards is presented in E6-4. Additional data regarding Linda’s sales of Xpert snowboards are provided below. Assume that Linda’s uses a perpetual inventory system.


In E6-4, Linda’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Linda’s purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Linda’s uses a periodic inventory system.


Instructions
(a) Compute ending inventory at September 30 using FIFO, LIFO, and moving-average cost.
(b) Compare ending inventory using a perpetual inventory system to ending inventory using a periodic inventory system (from E6-4).
(c) Which inventory cost flow method (FIFO, LIFO) gives the same ending inventory value under both periodic and perpetual? Which method gives different ending inventoryvalues?


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  • CreatedJanuary 30, 2014
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