Zhu Boards sells a snowboard, Xpert that is popular with snowboard enthusiasts. Information relating to Zhu's purchases of Xpert snowboards during September is shown on the next page. During the same month, 121 Xpert snowboards were sold. Zhu's uses a periodic inventory system.

Instructions
(a) Compute the ending inventory at September 30 and cost of goods sold using the FIFO and average-cost methods. Prove the amount allocated to cost of goods sold under each method.
(b) For both FIFO and average-cost, calculate the sum of ending inventory and cost of goods sold. What do you notice about the answers you found for each method?

Transcribed Image Text:

Date Sept. 1 Sept. 12 Sept. 19 Sept. 26 Explanation Inventory Purchases Purchases Purchases Totals Units 23 45 20 Unit Cost HK$ 970 1,020 1,040 1,050 Total Cost HK$ 22,310 45,900 20,800 46,200 HK$135,210 132