Question

# Novak Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating...

Novak Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Novak Corp.’s purchases of EZslide snowboards during September. During the same month, 107 EZslide snowboards were sold. Novak Corp. uses a periodic inventory system. Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 13 \$117 \$ 1,521 Sept. 12 Purchases 46 120 5,520 Sept. 19 Purchases 60 121 7,260 Sept. 26 Purchases 21 122 2,562 Totals 140 \$16,863 (a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST The ending inventory at September 30 \$Enter a dollar amount Entry field with incorrect answer now contains modified data \$Enter a dollar amount Entry field with incorrect answer now contains modified data \$Enter a dollar amount Entry field with incorrect answer now contains modified data (b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COST Cost of goods sold \$Enter a dollar amount Entry field with incorrect answer now contains modified data \$Enter a dollar amount Entry field with incorrect answer now contains modified data \$Enter a dollar amount Entry field with incorrect answer now contains modified data

 Date Unit Unit cost Total cost Sept 1 13 \$117 \$1,521 Sept 12 46 120 5,520 Sept 19 60 121 7,260 Sept 26 21 122 2,562 Total 140 \$16,863

Units in ending inventory = 140 - 107 = 33 units

Average cost per unit = \$16,863 / 140 = \$120.45 per unit

a.

 FIFO LIFO Average cost Cost of ending inventory \$4,014 [(\$2,562+(12*\$121)] \$3,921 [(1,521+(20*\$120)] \$3,975 (33*\$120.45)

b.

 FIFO LIFO Average cost Cost of goods sold \$12,849 (\$16,863-4,014) \$12,942 (\$16,863-3,921) \$12,888 (\$16,863-3,975)

#### Earn Coins

Coins can be redeemed for fabulous gifts.