and E6-8? (c) Why is the average unit cost not $6 [($5 + $6 + $7) +

Question:

and E6-8?

(c) Why is the average unit cost not $6 [($5 + $6 + $7) + 3 = $6]?

*E6-17 Information about Sherper’s Boards is presented in E6-4. Additional data regarding Sherper’s sales of Xpert snowboards are provided below. Assume that Sherper’s uses a perpetual inventory system.

Date Units Unit Price Total Revenue Sept. 5 Sale 12 $199 $ 2,388 Sept. 16 Sale 50 203 10,150 Sept. 29 Sale 2 209 So Totals Zi $24,869 Instructions

(a) Compute ending inventory at September 30 using FIFO, LIFO, and moving-average cost.

(b) Compare ending inventory using a perpetual inventory system to ending inventory using a periodic inventory system (from E6-4).

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

Fantastic news! We've Found the answer you've been seeking!