Linda's Boards sells a snowboard, Xpert, that is popular with snowboard enthusi-asts. 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 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 each method?

Transcribed Image Text:

Date Sept. 1 Sept. 12 Sept. 19 Sept. 26 Explanation Inventory Purchases Purchases Purchases Totals Units 26 45 20 50 141 Unit Cost $97 102 104 105 Total Cost $ 2,522 4,590 2,080 5,250 $14,442 Date Sept. 1 Sept. 12 Sept. 19 Sept. 26 Explanation Inventory Purchases Purchases Purchases Totals Units 26 45 20 50 141 Unit Cost $97 102 104 105 Total Cost $ 2,522 4,590 2,080 5,250 $14,442

Answer rating: 100% (QA)

a LIFO Cost of good available for sale141 units 14442 Less ending Inventory2... View the full answer