Sherper€™s Boards sells a snowboard, Xpert that is popular with snowboard enthusiasts. Information relating to Sherper€™s purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Sherper€™s uses a periodic inventory system.

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

Transcribed Image Text:

Units Explanation Inventory Purchases Purchases Purchases Totals Date Unit Cost Total Cost Sept. 1 Sept. 12 Sept. 19 Sept. 26 23 45 20 $ 97 102 104 105 2,231 4,590 2,080 4,620 $13,521 132