9.1 Calculating Inventory Under the FIFO and Average-

cost Methods Enterprise Renaud, a distributor of ski equipment, sells a snowboard known as the RemyGlide. Information relating to Renaud’s purchases of RemyGlide snowboards during October is shown below. During the same month, 242 RemyGlide snowboards were sold. Renaud uses a periodic inventory system.

Date Transaction Units Unit cost Total cost 1 Oct Inventory 52 €194 €10,088 10 Oct Purchase 90 204 18,360 18 Oct Purchase 40 208 8,320 25 Oct Purchase 100 210 21,000 Totals 282 €57,768 Required

a. Compute the ending inventory at October 31 and the cost of goods sold for the month of October using the FIFO and average cost methods.

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?