Information about Lindas Boards is presented in E6-4. Additional data regarding Lindas sales of Xpert snowboards are

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?

Transcribed Image Text:

Date Sept. 5 Sale Sept. 16 Sale Sept. 29 Sale Units 12 50 59 121 Unit Price $199 199 209 Total Revenue 2,388 9,950 12,331 $24,669 Totals Date Explanation Units Unit Cost Total Cost Sept. 1 Sept. 12 Sept. 19 Sept. 26 nvento Purchases Purchases Purchases 26 45 20 50 141 S 97 102 104 105 2,522 4,590 2,080 5,250 $14,442 Totals