Question

Beachpoint sells a snowboard Xpert that is popular with surfing enthusiasts. Below is information relating to Beachpoint's purchases and sales of Xpert snowboards during September. Beachpoint uses a perpetual inventory system. Beginning inventory and purchases are as follows: Date Explanation Units Unit Cost Total Cost Sept 1 Inventory 26 $ 97 $ 2 522 Sept 12 Purchases 45 102 4 590 Sept 19 Purchases 20 104 2 080 Sept 26 Purchases 50 105 5 250 Totals 141 $14 442 Sales are as follows: Date Units Unit Price Total Cost Sept. 5 Sale 12 $199 $ 2 388 Sept. 16 Sale 50 199 9 950 Sept. 29 Sale 62 209 12 958 Totals 124 $25 296 Instructions Compute the ending inventory at 30 September using: (a) FIFO $ (b) LIFO $ (c) Moving-Average cost (Round your answer to the nearest dollar*) $ *In your calculation round the average per unit cost to the nearest cent, that is, to 2 decimal places.

Answer 1

Answer (a):

FIFO Ending inventory at 30 September = $1785

Workings:

Answer (b):

LIFO Ending inventory at 30 September = $1705

Workings:

Answer (c):

Moving Average Ending inventory at 30 September = $1,772.59

Workings: