E6-4 Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts.Information relating to Elsa's purchases of Xpert snowboards during September is shownbelow. During the same month, 121 Xpert snowboards were sold. Elsa's uses a periodicinventory system.DateExplanationUnitsUnit CostTotal CostSept. 1Sept. 12Sept. 19Sept. 26$ 2,5224,5902,0805,250$ 97InventoryPurchases2645102PurchasesPurchases2010450105Totals141$14,442Instructions(a) Compute the ending inventory at September 30 and cost of goods sold using the FIFOand 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?

Using FIFO method, older units are sold first and under LIFO method, newer units are sold first.

E6-4 Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa's purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Elsa's uses a periodic inventory system. Explanation Inventory Purchases Purchases Purchases Date Units Unit Cost Total Cost $ 97 Sept. 1 Sept. 12 Sept. 19 Sept. 26 $ 2,522 4,590 2,080 5,250 26 45 102 20 104 50 105 Totals 141 $14,442 Instructions (a) Compute the ending inventory at September 30 and cost of goods sold 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?

E6-4 Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa's purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Elsa's uses a periodic inventory system. Explanation Inventory Purchases Purchases Purchases Date Units Unit Cost Total Cost $ 97 Sept. 1 Sept. 12 Sept. 19 Sept. 26 $ 2,522 4,590 2,080 5,250 26 45 102 20 104 50 105 Totals 141 $14,442 Instructions (a) Compute the ending inventory at September 30 and cost of goods sold 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?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 1AP

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