Sherpers sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Sherpers's purchases of Xpert snowboards during September. During the same month, 124 Xpert snowboards were sold. Sherpers uses a periodic inventory system.

Instructions

(a) Compute the ending inventory at September 30 using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method.

(b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold.
What do you notice about the answers you found for each method?

Transcribed Image Text:

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