Inventory valuation methods. Computations and concepts.
Response to the following problem:
Wave Riders Surf Board Company began business on January 1 of the current year. Purchases of surf boards were as follows:
Jan.3 100 boards @ $125
Mar.17 50 boards @ $130
May.9 246 boards @ $140
July.3 400 boards @ $150
Oct.23 74 boards @ $160
Wave Riders sold 710 boards at an average price of $250 per board. The company uses a periodic inventory system.
Instructions: Calculate cost of goods sold, ending inventory, and gross profit under each of the following inventory valuation methods: First-in, first-out.