Question

Shamrock, Inc. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Shamrock, Inc.’s purchases of EZslide snowboards during September. During the same month, 103 EZslide snowboards were sold. Shamrock, Inc. uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 10 $111 $ 1,110 Sept. 12 Purchases 56 114 6,384 Sept. 19 Purchases 60 115 6,900 Sept. 26 Purchases 24 116 2,784 Totals 150 $17,178 (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 $Enter a dollar amount $Enter a dollar amount $Enter a dollar amount (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 $Enter a dollar amount $Enter a dollar amount $Enter a dollar amount

Answer 1

		FIFO	LIFO	AVERAGE-COST
(a)	Ending inventory at September 30	$         5,429	$         5,328	$                 5,382
(b)	Cost of goods sold at September 30	$       11,749	$       11,850	$               11,796

Working:

Periodic-FIFO
	Beginning Inventory + Purchases			Cost of Goods Sold			Balance in Inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
Sept. 1	10	111	1110	10	111	1110
Sept. 12	56	114	6384	56	114	6384
Sept. 19	60	115	6900	37	115	4255	23	115	2645
Sept. 26	24	116	2784				24	116	2784
Sept. 30 Bal.	150		17178	103		11749	47		5429
Periodic-LIFO
	Beginning Inventory + Purchases			Cost of Goods Sold			Balance in Inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
Sept. 1	10	111	1110				10	111	1110
Sept. 12	56	114	6384	19	114	2166	37	114	4218
Sept. 19	60	115	6900	60	115	6900
Sept. 26	24	116	2784	24	116	2784
Sept. 30 Bal.	150		17178	103		11850	47		5328

Average-cost per unit = $17178/150 = $114.520

Ending inventory = 47 x $114.52 = $5382.44 rounded off to $5382

Cost of goods sold = 103 x $114.52 = $11795.56 rounded off to $11796