Question

Pearl Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Pearl Corp.’s purchases of EZslide snowboards during September. During the same month, 102 EZslide snowboards were sold. Pearl Corp. uses a periodic inventory system.

Date		Explanation		Units		Unit Cost		Total Cost
Sept. 1		Inventory		10		$107		$ 1,070
Sept. 12		Purchases		46		110		5,060
Sept. 19		Purchases		53		111		5,883
Sept. 26		Purchases		21		112		2,352
		Totals		130				$14,365

(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

Answer = Since we know that in case of periodic method inventory is valued at the end of the period. So, Value of Ending Inventory as on 30 Sept =

As Per FIFO

Sold Units = 102 Units = cost of goods sold = 11236 (A) (10 units @ 107 + 46 units @ 110 + 46units @ 111 = 11236)

Total Purchase = 130 Units = 14365.

Value of inventory as per FIFO = 14365 - 11236 = 3129

As Per LIFO

SOld Units = 102 Units = Cost of goods sold = 11315 (B) ( 21 units @ 112 + 53 @ 111 + 28 @110 = 11315)

Total Purchase = 130 Units = 14365

Vale uf ending Inventory AS per LIFO = 14365 - 11315 =3050

As Per Average cost

Sold Units = 102 units = Cost of goods sold = 11152 (C) ( Avergage Cost for first 102 Units = 107 + 110 + 111 / 3 = 109.3 ) ( 102 * 109.3 = 11152)

Total Purchase = 130 Units = 14365

Value of Ending Inventory as per Average cost = 14365 - 11152 =3213

Answer 2 = Cost of Goods Sold as on 30 sept FIFO LIFO AVERAGE

11236 (A) 11315(B) 11152 (C)

Note - A, B, C has been used to refer how c cost of goods sold has been calculated.