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|
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|
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
a) FIFO Method
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fromChapter 6 / Lesson 11
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.