Boarders sells a snowboard Xpert, that is popular with snowboard enthusiasts. Below is...
Question:
Boarders sells a snowboard Xpert, that is popular with snowboard enthusiasts. Below is information relating to Boarder's purchases of Xpert snowboards during September. During the same month, 121 Xpert snowboards were sold.
| Date | Explanation | Units | Unit Cost | Total Cost |
| Sep. 1 | Inventory | 26 | 98 | 2,548 |
| Sep. 12 | Purchases | 45 | 105 | 4,725 |
| Sep. 19 | Purchases | 20 | 108 | 2,160 |
| Sep. 26 | Purchases | 50 | 115 | 5,750 |
Additional data regarding Boarders' sales of Xpert snowboards are provided below. Assume that Boarders uses a perpetual inventory system.
| Date | Units | Unit Cost | Total cost | |
| Sep.5 | Sale | 12 | 199 | 2,388 |
| 16 | Sale | 50 | 199 | 9,950 |
| 29 | Sale | 59 | 209 | 12,331 |
Compute ending inventory at September 30 using FIFO, LIFO, and average cost.
Average Cost Method:
The average cost method is calculated as total goods available for sale divided by the total units purchased. The other methods are first in first out (FIFO) and last in first out (LIFO)
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answera) FIFO Method
| Date | Purchase | Sale | Ending Inventory |
|---|---|---|---|
| ... |
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
from
Chapter 6 / Lesson 11
33K
Inventory valuation methods are ways that companies place a monetary value on the items they have in their inventory. Discover different inventory valuation methods, including specific identification, First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and weighted average.
Related to this Question
- Delmott sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Delmott?s purchases of Xpert snowboards during September. During the same month, 102 Xper
- Delmott sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Delmott?s purchases of Xpert snowboards during September. During the same month, 101 Xper
- Delmott sells a snowboard, Xpert that is popular with snowboard enthusiasts. Below is information related to Delmott's purchase of Xpert snowboards during September. During the same month 102 Xpert snowboards were sold. Delmott uses a periodic inventory s
- Elsas Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa's purchases of Xpert snowboards during September is shown below. During the same month,
- Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa's purchases of Xpert snowboards during September is shown below. During the same month,
- Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa's purchases of Xpert snowboards during September is shown below. During the same month, 191 Xpert snowboards were sold. Elsa uses a periodic i
- Elsa's Boards sells a snowboard, Xpert that is popular with snowboard enthusiasts. Information relating to Elsa's purchases of Xpert snowboards during September is shown below. During the same month, 225 Xpert snowboards were sold. Elsa uses a periodic in
- 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, 123 Xpert snowboards were sold. Linda uses a periodi
- Ben?s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Ben?s purchases of Xpert snowboards during September is shown below. During the same month, 1
- Lindas Boards sells a snowboard Xpert that is popular with snowboard enthusiasts. Information relating to Lindas purchases of Xpert snowboards during September is shown below During the same month 163
- 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
- Stengel company sells a snowboard, WhiteOut, that is popular with snowboard enthusiasts. Presented below is information relating to Stengel Company's purchases of WhiteOut snowboards during September. During the same month, 124 WhiteOut snowboards were so
- Pharoah Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Pharoah Company's purchases of EZslide snowboards during September. During the
- Wild Riders Surfboard Company began business on January 1 of the current year. Purchases of surfboards were as follows: Date Quantity Unit Co
- Wave Riders Surfboard Company began business on January 1 of the current year. Purchases of surfboard were as follows: 1/3: 100 boards at $125 3/17: 50 boards at 130 5/9: 246 boards at $140 7/3: 400 boards at $150 10/23: 74 boards at $160 Wave Riders sold
- On January 1, 2016, Pearson Corp. has beginning inventory of 480 surfboards. Pearson estimates it will sell 2,400 units during the first quarter of 2016 with a 10% increase in sales each quarter. Each surfboard is sold for $225. How much is the budgeted s
- Attila Inc. makes skis. For the month of January they believe they will sell 1,000 pairs of skis. The selling price for their skis is $300 per pair. They believe their costs for the month will include: Wages: $35,000 plus $55 per pair of skis sold Suppl
- During a year, Teri's monthly sales compensation ranged between $19,000 and $25,800 per month and units sold ranged between 1,300 and 2,100 units for those same months. Required: Use the high-low met
- Budgeted sales (in units) for the Payton Company are as follows: September 45,000 units October 60,000 units November 40,000 units December 75,000 units The company wishes to have 10% of the next month's sales on hand at the end of each month. Budgeted pr
- During a year, Teri's monthly sales compensation ranged between $15,000 and $20,200 per month and units sold ranged between 1,000 and 1,800 units for those same months. Use the high-low method to de
- During a year, Teri's monthly sales compensation ranged between $14,000 and $18,800 per month and units sold ranged between 1,300 and 2,100 units for those same months. Use the high-low method to dete
- Tamarisk Corp. discloses the following information for the month of June. June 1 Balance 301 units @ $16 10 Sold 198 units @ $39 11 Purchased 797 units @ $19 15 Sold 497 units @ $41 20 Purchased 49
- Three identical units of Item K113 are purchased during July, as shown below. Item K113 Units Cost July 9 Purchase 1 153 17 Purchase 1 174 26 Purchase 1 191 Assume that one unit is sold on July 31 for $248. Determine the gross profit for July using the
- The units of an item available for sale during the year were as follows: Jan. 1Inventory42 units @ $180 per unit Apr. 10Purchase58 units @ $195 per unit Sept. 30Purchase20 units @ $204 per unit Dec. 1
- Matterhorn, Inc. had the following sales for the past six months. Matterhorn collects its credit sales 30% in the month of sale, 60% one month after the sale, and 10% two months after the sale. Cash S
- Mower-Blower Sales Co. started business on January 20, 2016. Products sold were snow blowers and lawn mowers. Each product sold for $1,400. Purchases during 2016 were as follows: BlowersMowers January
- Bramble Corp. discloses the following information for the month of June. June 1 Balance 304 units @ $17 June 10 Sold 201 units @ $41 June 11 Purchased 804 units @ $21 June 15 Sold 503 units @ $43 June
- Budgeted sales (in units) for Falter Company are as follows: | September | 50,000 units | October | 60,000 units | November | 55,000 units | December | 80,000 units The company wishes to have 20% of the next month's sales on hand at the end of each mo
- Seminole Corp. Discloses the following information for the month of June. |June | | Units | @ $ | 1 | Balance | 303| 12 | 10 | Sold | 203| 29 | 11 | Purchased | 798 | 13 |15| Sold | 503 | 30 |20 | Purchased| 501| 16 |27 | Sold| 255| 33 Assuming that the p
- Three identical units of Item K113 are purchased during July, as shown below: Item K113 Units Cost July 9 Purchase 1 155 17 Purchase 1 172 26 Purchase 1 191 Required: Assume that one unit is sold on
- Mower-Blower Sales Co. started business on January 20, 2016. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2016 were as follows: Blowers Mowers 18 $ 19
- At January 1, 2014, Top Surf, Inc. has beginning inventory of 2,100 surfboards. Top Surf estimates it will sell 6,000 units during the first quarter of 2014 with a 10% increase in sales each quarter.
- A company made the following merchandise purchases and sales during the month of May: May 1 Purchased 380 units at $15 each May 5 Purchased 270 units at $17 each May 10 Sold 400 units at $50 each May 20 Purchased 300 units at $22 each May 25 Sold 400 unit
- The units of an item available for sale during the year were as follows: Jan 1Inventory30 units @ $104 Mar 10Purchase50 units @ $112 Aug 30Purchase10 units @ $120 Dec 12Purchase110 units @ $122 There
- Wild Riders Surfboard Comp any began business on January 1 of the current year. Purchases of surfboards were as follows: Date Quantity Unit Cost Total Cost 1/3 100 $125 $12,500 4/3 200 $135 $27,000 6/3 100 $145 $14,500 7/3 100 $155 $15,500 Total 500 $69
- Based on the following information: As of January 1, 200A, Autocoto Shop's has the following balance of its equipment: Equipment: P100,000 Less: Accumulated depreciation (for 6 years): 60,000 Book value: P40,000 On June 30, 200A, the shop sold its old equ
- WadCo plans to sell 100 units during the month of August. If the company has 250 units on hand at the start of the month and plans to have 200 units on hand at the end of the month, how many units must be produced during the month? A. 100 B. 50 C. 200 D.
- The following information is from White Mountain Furniture Showroom's financial records. Month Sales Purchases July $82,000 $58,000 August $70,000 $44,000 September $75,000 $32,000 October $75,000 $50,000 Collections from customers are normally 67 percent
- Required information Ruiz Co. provides the following sales forecast for the next four months | |April |May|June| July | Sales (units) | 520| 600 |550|640 The company wants to end each month with en
- Gamma Inc. has forecast sales as follows: July 13,200 units August 11,700 units September 9,700 units October 7,200 units Each unit sells for $11. Gamma s selling and administrative budgets are $2,500 fixed per month plus $1.60 per unit sold. What are th
- TransWorld Publishing completed the following transactions during 2014: Oct 1 Sold a six-month subscription (starting on November 1), collecting cash of $330, plus sales tax of 9% Nov 15 Remitted (p
- Clue Co. owned all of the voting common stock of Snow Co. On January 2, 2011, Clue sold some equipment to Snow for $125,000. The equipment had a cost of $140,000. At the time of the sale, the balan
- During a year, Teri's monthly sales compensation ranged between $20,000 and $27,200 per month and units sold ranged between 1,000 and 1,800 units for those same months. Required: Use the high-low method to determine Teri's monthly salary and commission ra
- Production in 2015, for Emma's custom snowboards, was at its highest point in the month of June, when 180 units were produced, at a total cost of $62,100.80. The low point in production was in January
- Noel Enterprises has budgeted sales in units for the next five months as follows: January 6,800 units February 5,400 units March 7,200 units April 4,600 units May 3,800 units Past experience has shown that the ending inventory for each month must be equal
- Determine the buyer's OTB as of November 14 using the following information: Planned sales for November = $40,000 Actual sales, November 1-14 = 18,500 Stock on hand, November 14 = 65,000 Planned stock, December 1 = 50,000 Planned markdowns for the mo
- Andover Inc. had a gross margin for the month of February totaling $42,000. They sold 5,000 units during the month at a sales price of $20 per unit. What was the amount of cost of goods sold for the
- Walsh Company expects sales of Product W to be 61,000 units in April, 77,000 units in May, and 80,000 units in June. The company desires that the inventory on hand at the end of each month be equal to 40% of the next month's expected unit sales. Given thi
- Canterbury Cycles sells Harleys and pays each salesperson a commission of $800 for each cycle sold. During the month of December, a salesperson sold 3 cycles. The company pays commissions on the 5th day of the month following the sale. Which of the follo
- Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,000 units, October, 5,000 units; November 7 000 units, and December, 8600 units. The company's policy is to mai
- Blue Wave Co. predicts the following unit sales for the coming four months: September: 4,000 units October: 5,000 units November 7,000 units December 7,600 units The company's policy is to maintain fi
- Cambruzzi Company was established in December of the current year. Its sales of merchandise on the account and related returns and allowances during the remainder of the month are described below. Dec. 15 Sold merchandise on account to A Co., $850. 19 Sol
- A company purchased 500 units for AED 30 each on January 31. It purchased 550 units for AED 33 each on February 28. It sold a total of 650 units for AED 45 each from March 1 through December 31. What is the cost of ending inventory on December 31 if the c
- On December 30, 2013, a county purchases a new snowplow for $100,000. On January 2, 2014, the snowplow is seriously damaged in an accident. The plow is uninsured. Soon after the accident, the county is able to sell the snow plow for $10,000. a) Record the
- A sample of 5 months of sales data provided the following information: Month 1 2 3 4 5 Units Sold 96 100 82 96 91 Develop a point estimate of the population mean number of units sold per month (to 1
- Presented below is certain information pertaining to Edson Company. Assets, January 1 $250,000 Assets, December 31 230,000 Liabilities, January 1 150,000 Common stock, December 31 80,000 Retained earnings, December 31 41,000 Common stock sold during the
- Badlands, Inc. manufactures a household fan that sells for $40 per unit. All sales are on account, with 35% of sales collected in the month of sale and 65% collected in the following month. The data t
- Pacesetters, Inc., has actual sales for July and August and forecasted sales for September, October, November, and December as follows: Actual: July 5,900 units August 6,200 units Forecast: September 6,000 units October 6,800 units
- Given the following information: As of January 1, 200A, Autocoto Shop's has the following balance of its equipment: Equipment: P100,000 Less: Accumulated depreciation (for 6 years): 60,000 Book value: P40,000 On June 30, 200A, the shop sold its old equipm
- Alpha Corporation is currently selling 500 skateboards per month. The unit selling price and variable expenses are $60 and $35 respectively. The fixed expenses amount to $5,000 per month. The company
- Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2016. The firm purchases merchandise on open account. The firm s p
- Mover-Blower Sales Co. started business on January 20, 2013. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2013 were as follows Blowers: January 21 20 @
- Detmer Enterprises has budgeted sales for the next four months as follows: Budgeted Sales in Units January 7,400 units February 5,300 units March 3,900 units April units Detmer's product sells for $2
- Mendez Company has budgeted the following unit sales: 2020 Units January 10,000 February 8,000 March 9,000 April 11,000 May 15,000 The finished goods units on hand on December 31, 2019, were 1,000 units. Each unit requires 2 pounds of raw materials that a
- The company has 5,600 units of product on hand at July 1. 10% of the next month's sales in units should be on hand at the end of each month. October sales are expected to be 79,500 units. Budgeted sales for September would be (in units): [{Blank}]
- 1. Sales forecast: January: 2,100 units; February: 2,900 units; March: 3,300 units; April: 3,500 units. The unit sales price is $50. All sales are on credit and collections are 20% in the month of sal
- Sales forecast: January: 2,100 units; February: 2,900 units; March: 3,300 units; April: 3,500 units. The unit sales price is $50. All sales are on credit and collections are 20% in the month of sal
- A company made the following merchandise purchases and sales during the current month: July 1: purchased 380 units at $15 each July 5: purchased 270 units at $20 each July 9: sold 500 units at $55 each July 14: purchased 300 units at $24 each July 2
- A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $130 8 units February: 20 units at $135 5 units May: 15 units at $140 9 units September: 12 units at $145 8 units November: 10 units
- As of January 1, 200A, Autocoto Shop's has the following balance of its equipment: Equipment: P100,000 Less: Accumulated depreciation (for 6 years): 60,000 Book value: P40,000 On June 30, 200A, the shop sold its old equipment for P40,000. On the same date
- . A company made the following merchandise purchases and sales during the month of May: May 1- purchased 380 units at $15 each ; May 5 - purchased 270 units at $17 each ; May 10 - sold 400 units at $5
- On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing note due January 1, 2018. The fair value of the land was $126,252.00 on the date of sale. Crouser purchased the land for $105,000 on January
- Trendsetters, Inc has actual sales for July and August and forecasted sales for September, October, November, and December as follows: Actual July 5,900 units August 6,200 units September 6,000 unit
- Budgeted sales (in units) for Falter Company are as follows: September 50,000 units, October 60,000 units, November 55,000 units, December 80,000 units. The company wishes to have 20 percent of the ne
- The following facts relate to gift cards sold by Sunbru Coffee Company during 2011. Sunbru's fiscal year ends on December 31. (a.) In October, 2011 sold $3,000 of gift cards, and redeemed $500 of those gift cards. (b.) In November, 2011, sold $4,000 of gi
- Garza Electronics expects to sell 560 units in January, 310 units in February, and 1,300 units in March. January's beginning inventory is 820 units. Expected sales for the whole year are 10,800 units. Garza has decided on a level monthly production schedu
- Budgeted sales (in units) for the Walter Company are as follows: September 50,000 units October 70,000 units November 45,000 units December 80,000 units The company wishes to have 20% of the next month's sales on hand at the end of each month. Budgeted pr
- A company made the following merchandise purchases and sales during the current month: July 1 purchased 400 units at $15 each July 5 purchased 270 units at $15 each July 14 purchased 300 units at $25
- Grafton sells a product for $900. Unit sales for May were 600 and a 4% growth in unit sales is forecasted for each month. Compute the total sales to be reported on the sales budget for the month ended June 30. a. $540,000 b. $561,600 c. $518,400 d. $553,0
- Presented below is certain information pertaining to Edson Company. Assets, January 1 $240,000 Assets, December 31 230,000 Liabilities, January 1 150,000 Common stock, December 31 80,000 Retained earnings, December 31 31,000 Common stock sold during
- Monique Aaron Corp. discloses the following information for the month of June. June 1 Balance 300 units @ $12 June 10 Sold 196 units @ $29 June 11 Purchased 798 units @ $14 June 15 Sold 502 units @ $30 June 20 Purchased 498 units @ $16 June 27 Sold 303 un
- On December 31, 2009, the end of the accounting period, Cruise Company has on hand 10,000 units of a resale item which cost $40 per unit when purchased on June 15, 2009. The selling price is $70 per unit. On December 30, 2009, the cost had dropped to $38
- Dugan Sales had the following transactions for jackets in 2014, its first year of operations; Jan 20 Purchased 75 units @ $16 $,1200 Apr 21 Purchased 420 units @ $18 7,560 July 25 Purchased 190 units
- Pears Department Store reported the following information for 2013: Budgeted Sales: October: $1,240,000 November: $1,160,000 December: $1,440,000 All sales are on credit. Customer amounts on account are collected 50% in the month of sale and 50% in the f
- A company made the following merchandise purchases and sales during the current month: July 1 purchased 380 units at $15 each July 5 purchased 270 units at $20 each July 9 sold 500 units at $55 eac
- Southside Corporation produces and sells a single product. Expected sales for September are 13000 units, for October 14000 units, for November 9000 units, for December 10000 units and for January 1500
- Southside Corporation produces and sells a single product. Expected sales for September are 13,000 units; for October, 14,000 units; for November, 9,000 units; for December, 10,000 units; and for J
- During the months of January and February, Axe Corporationpurchased goods from three suppliers. The sequence of events was asfollows: Jan. 6 Purchased goods for $1,200 fromGreen with terms 2/10, n/30. 6 Purchased goods from Munoz for$900 with terms 2/10,
- On January 1, 2007 Crouser Company sold land to Chad Company, accepting a two-year, $150,000 non-interest-bearing note due January 1, 2009. The fair value of the land was $123,966.90 on the date of sale. The company purchased the land for $120,000 on Janu
Explore our homework questions and answers library
Browse
by subject