Question

Blue Spruce Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Blue Spruce Corp.’s purchases of EZslide snowboards during September. During the same month, 108 EZslide snowboards were sold. Blue Spruce Corp. uses a periodic inventory system.

Date		Explanation		Units		Unit Cost		Total Cost
Sept. 1		Inventory		11		$116		$ 1,276
Sept. 12		Purchases		48		119		5,712
Sept. 19		Purchases		60		120		7,200
Sept. 26		Purchases		21		121		2,541
		Totals		140				$16,729

(a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods.

		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.

		FIFO		LIFO		AVERAGE-COST
Cost of goods sold

Answer 1

Average Cost Method

Number of units available for sale	140
Cost of goods available for sale	$       16,729
Weighted average cost per unit $16,729/140)	$   119.4929

Cost of goods sold = 108*$119.4929

Cost of goods sold = $12,905

Ending inventory = 32*$119.4929

Ending inventory = $3,824

FIFO Method

	Units	Rate	Amount
Sale from beginning inventory	11	$   116	$     1,276
Sale from Sep 12 purchase	48	$   119	$     5,712
Sale from Sep 19 purchase	49	$   120	$     5,880
Cost of goods sold FIFO	108		$   12,868

	Units	Rate	Amount
Balance from Sep 19 purchase	11	$   120	$     1,320
Balance from Sep 26 purchase	21	$   121	$     2,541
Ending inventory FIFO	32		$     3,861

LIFO Method

	Units	Rate	Amount
Sale from Sep 26 purchase	21	$   121	$     2,541
Sale from Sep 19 purchase	60	120	$     7,200
Sale from Sep 12 purchase	27	$   119	$     3,213
Cost of goods sold LIFO	108		$   12,954

	Units	Rate	Amount
Balance from Beginning inventory	11	$   116	$     1,276
Balance from Sep 12 purchase	21	$   119	$     2,499
Ending inventory LIFO	32		$     3,775

You can reach me over comment box, if you have any doubts. Please rate this answer