Problem #3 Periodic Inventory Valuation

Elsas Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsas purchases of Xpert snowboards during September is shown below. During the same month, 111 Xpert snowboards were sold. Elsas uses a periodic inventory system. Date

Explanation Units Unit Cost Total Cost

Sept. 1 Inventory 36 $ 95 ???

Sept. 12 Purchases 45 101 ???

Sept. 19 Purchases 20 103 ???

Sept. 26 Purchases 60 108 ???

Totals ??? ???

Instructions

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

(b) For both FIFO, LIFO, and Average Cost Method, calculate the sum of ending inventory and cost of goods sold.

(c ) What do you notice about the answers you found for each method?