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 Inventory26 98 2,548
Sep. 12 Purchases 45 105 4,725
Sep. 19 Purchases 20 108 2,160
Sep. 26 Purchases 50 1155,750

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

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a) FIFO Method

Date Purchase Sale Ending Inventory
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Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average

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Chapter 6 / Lesson 11
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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.


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