Question

Ayayai’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Ayayai’s purchases and sales of Xpert snowboards during September is shown below. During the same month, 242 Xpert snowboards were sold. Additional data regarding Ayayai’s sales of Xpert snowboards are provided below. Assume that Ayayai’s uses a perpetual inventory system.

Date		Explanation		Units			Unit Cost			Total Cost
Sept. 1		Inventory		52			$100			$ 5,200
Sept. 12		Purchases		90			105			9,450
Sept. 19		Purchases		40			108			4,320
Sept. 26		Purchases		100			115			11,500
		Totals		282						$30,470

Date				Units		Unit Price			Total Revenue
Sept. 5		Sale		24		$199			$4,776
Sept. 16		Sale		100		199			19,900
Sept. 29		Sale		118		209			24,662
		Totals		242					$49,338

Part 1

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

Answer 1

Perpetual Average:-

LIFO	Inventory on Hand			Cost of Goods Sold			Inventory Balance
	# of units	Cost pu	Inventory Value	# of units	Avg cost pu	Cost of Goods Sold	# of units	Cost pu	Value
Beginning Inventory-Sep 1	52	$100	$5200				52	$100	$5200
Sale-Sep 5				24	$100	$2400
Subtotal Average cost							28	$100	$2800
Purchase-Sep 12	90	$105	$9450				90	$105	$9450
Subtotal Average cost							118	$103.81	$12250
Sale-Sep 16				100	$103.81	$10381
Subtotal Average cost							18	$103.81	$1869
Purchase-Sep 19	40	$108	$4320				40	$108	$4320
Subtotal Average cost							58	$106.71	$6189
Purchase-Sep 26	100	$115	$11500				100	$115	$11500
Subtotal Average cost							158	$111.96	$17689
Sale-Sep 29				118	$111.96	$13211
Subtotal Average cost							40	$111.96	$4478