Question

Riverbed’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Riverbed’s purchases and sales of Xpert snowboards during September is shown below. During the same month, 273 Xpert snowboards were sold. Additional data regarding Riverbed’s sales of Xpert snowboards are provided below. Assume that Riverbed’s uses a perpetual inventory system.

Date		Explanation		Units			Unit Cost			Total Cost
Sept. 1		Inventory		59			$99			$ 5,841
Sept. 12		Purchases		101			103			10,403
Sept. 19		Purchases		45			107			4,815
Sept. 26		Purchases		113			112			12,656
		Totals		318						$33,715

Date				Units		Unit Price			Total Revenue
Sept. 5		Sale		27		$199			$5,373
Sept. 16		Sale		113		199			22,487
Sept. 29		Sale		133		209			27,797
		Totals		273					$55,657

Calculate moving average cost at Sept 1, 5, 12, 16, 19, 26 & 29. (Round answers to 2 decimal places, e.g. 1.25.)

September 1		$enter a dollar amount rounded to 2 decimal places
September 5		$enter a dollar amount rounded to 2 decimal places
September 12		$enter a dollar amount rounded to 2 decimal places
September 16		$enter a dollar amount rounded to 2 decimal places
September 19		$enter a dollar amount rounded to 2 decimal places
September 26		$enter a dollar amount rounded to 2 decimal places
September 29		$enter a dollar amount rounded to 2 decimal places

eTextbook and Media

  

  

Compute ending inventory at September 30 using FIFO, LIFO, and moving-average cost. (Round average-cost per unit to 2 decimal places, e.g. 12.50 and final answer to 0 decimal places, e.g. 1,250.)

		FIFO		LIFO		MOVING-AVERAGE COST
The ending inventory		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places

eTextbook and Media

  

  

Compare ending inventory using a perpetual inventory system to ending inventory using a periodic inventory system. (Round average-cost per unit to 2 decimal places, e.g. 12.50 and final answer to 0 decimal places, e.g. 1,250.)

		Periodic		Perpetual
Ending Inventory FIFO		$enter a dollar amount rounded to 1 decimal places		$enter a dollar amount rounded to 1 decimal places
Ending Inventory LIFO		$enter a dollar amount rounded to 1 decimal places		$enter a dollar amount rounded to 1 decimal places

eTextbook and Media

  

  

Which inventory cost flow method (FIFO, LIFO) gives the same ending inventory value under both periodic and perpetual?

select a method                                                                      Average-cost methodFIFO methodLIFO method

Which method gives different ending inventory values?

select a method                                                                      LIFO methodFIFO methodAverage-cost method

Answer 1