Task: Sherpers sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Sherpers's purchases of Xpert snowboards during September. During the same month, 124 Xpert snowboards were sold. Sherpers uses a periodic inventory system.
Date Explanation Units Unit Cost Total Cost
Sept. 1 Inventory 26 $ 97 $ 2,522
Sept. 12 Purchases 45 102 4,590
Sept. 19 Purchases 20 104 2,080
Sept. 26 Purchases 50 105 5,250
Totals 141 $14,442
Instructions:
(Q1) Compute the ending inventory at September 30 using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method.
(Q2) 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?