JK Sports sells rolling skates, Xpress, that is popular with rolling skates enthusiasts. Information relating to JK Sports$$ purchases of Xpress skates during September is shown below. During the same month, $121$ Xpress rolling skates were sold. JK Sports$$ uses a periodic inventory system.

Date Explanation Units Unit Cost $($$$)$ Total Cost $($$$)$

Sept. $1$ Inventory $2397022,310$

Sept. $12$ Purchases $451,02045,900$

Sept. $19$ Purchases $201,04020,800$

Sept. $26$ Purchases $441,05046,200$

Totals $132135,210$

Instructions

Compute the ending inventory at September $30$ and cost of goods sold using the FIFO and average$-$cost methods.

For both FIFO and average$-$cost$,$ calculate the sum of ending inventory and cost of goods sold. What do you notice about the answers you found for each method?

Additional data regarding JK Sports$$ sales of Xpress skates are provided below. Now, assume that JK Sports uses a perpetual inventory system.

Date Units Unit Price $($$$)$ Total Revenue $($$$)$

Sept. $5$ Sale $121,99023,880$

Sept. $16$ Sale $502,030101,500$

Sept. $29$ Sale $592,090123,310$

Totals $121248,690$

Instructions

Compute ending inventory at September $30$ using FIFO and moving$-$average cost.

Compare ending inventory using a perpetual inventory system to ending inventory using a periodic inventory system

Which inventory cost flow method $($FIFO$,$ moving$-$average cost$)$ gives the same ending inventory value under both periodic and perpetual? Which method gives different ending inventory values?