Exercise 64 Oriole Company sells a snowboard EZslide that is

Exercise 6-4

Oriole Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Oriole Company’s purchases of EZslide snowboards during September. During the same month, 94 EZslide snowboards were sold. Oriole Company uses a periodic inventory system.

Date

Explanation

Units

Unit Cost

Total Cost

Sept. 1

Inventory

13

$108

$ 1,404

Sept. 12

Purchases

46

111

5,106

Sept. 19

Purchases

47

112

5,264

Sept. 26

Purchases

18

113

2,034

Totals

124

$13,808

(a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.)

FIFO

?

LIFO

?

AVERAGE-COST

?

The ending inventory at September 30

(b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.)

FIFO

?

LIFO

?

AVERAGE-COST

?

Cost of goods sold

Date		Explanation		Units		Unit Cost		Total Cost
Sept. 1		Inventory		13		$108		$ 1,404
Sept. 12		Purchases		46		111		5,106
Sept. 19		Purchases		47		112		5,264
Sept. 26		Purchases		18		113		2,034
		Totals		124				$13,808

Solution

Total goods available for sale = 124

less: units were sold = 94

   Ending inventory = 30 units

FIFO

   cost of goods sold at September 30 for 94 units = 13 units from beginning inventory at $108 = $1,404

=46 units from 12th spet. at $111 = 5,106

=35 units from 19th spet. at $112 = 3920

94 units = 10430

   ending inventory at September 30 for 30 units = 12 units from 19th spet. at $112 = $1344

= 18 units from 26th spet. at $113 = 2,034

= $3378

LIFO

cost of goods sold at September 30 for 94 units = 18 units from 26th spet. at $113 = 2,034

= 47 units from 19th spet. at $112 =  5,264

= 29 units from 12th spet. at $111 = 3219

94 units = 10517

ending inventory at September 30 for 30 units = 17 units from 12th spet. at $111 = 1887

=13 units from beginning inventory at $108 = $1,404

= $3291

average-cost methods

AVERAGE-COST = Total cost of goods avialable for sale / (beginning inventory + purchased units)

   =$13,808 / 124

= $111.355

cost of goods sold at September 30 for 94 units = 94 units * $111.355 = $10467

ending inventory at September 30 for 30 units = 30 units * $111.355 = $3341