Question

Blossom Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Blossom Company’s purchases of EZslide snowboards during September. During the same month, 104 EZslide snowboards were sold. Blossom Company uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 13 $104 $ 1,352 Sept. 12 Purchases 46 107 4,922 Sept. 19 Purchases 50 108 5,400 Sept. 26 Purchases 20 109 2,180 Totals 129 $13,854 (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 $Entry field with correct answer 2720 $Entry field with correct answer 2636 $Entry field with incorrect answer (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 $Entry field with correct answer 11134 $Entry field with incorrect answer 10490 $Entry field with incorrect answer

Answer 1

• All working forms part of the answer
• Workings

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	13	$              104.00	$                        1,352.00	13	$       104.00	$           1,352.00	0	$      104.00	$                         -
Purchases:
12-Sep	46	$              107.00	$                        4,922.00	46	$       107.00	$           4,922.00	0	$      107.00	$                         -
19-Sep	50	$              108.00	$                        5,400.00	45	$       108.00	$           4,860.00	5	$      108.00	$                540.00
26-Sep	20	$              109.00	$                        2,180.00		$       109.00	$                        -	20	$      109.00	$            2,180.00
TOTAL	129		$                      13,854.00	104		$        11,134.00	25		$            2,720.00

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	13	$              104.00	$                        1,352.00		$       104.00	$                        -	13	$      104.00	$            1,352.00
Purchases:	0	$                       -	$                                     -
12-Sep	46	$              107.00	$                        4,922.00	34	$       107.00	$           3,638.00	12	$      107.00	$            1,284.00
19-Sep	50	$              108.00	$                        5,400.00	50	$       108.00	$           5,400.00	0	$      108.00	$                         -
26-Sep	20	$              109.00	$                        2,180.00	20	$       109.00	$           2,180.00	0	$      109.00	$                         -
TOTAL	129		$                      13,854.00	104		$        11,218.00	25		$            2,636.00

Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	13	$              104.00	$                        1,352.00
Purchases:	0	$                       -	$                                     -
12-Sep	46	$              107.00	$                        4,922.00
19-Sep	50	$              108.00	$                        5,400.00
26-Sep	20	$              109.00	$                        2,180.00
TOTAL	129	$         107.395 [ $13,854/129 units]	$                      13,854.00	104	$         107.395 [ $13,854/129 units]	$           11,169	25	$         107.395 [ $13,854/129 units]	$            2,685

• All answer, Requirement ‘a’ and Requirement ‘b’

	FIFO	LIFO	Average Cost
Requirement ‘a’: Ending Inventory	$            2,720	$                    2,636	$                       2,685
Requirement ‘b’: Cost of Goods Sold	$          11,134	$                  11,218	$                     11,169