Question

Blossom Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Blossom Company’s purchases of EZslide snowboards during September. During the same month, 104 EZslide snowboards were sold. Blossom Company uses a periodic inventory system.

Date		Explanation		Units		Unit Cost		Total Cost
Sept. 1		Inventory		13		$115		$ 1,495
Sept. 12		Purchases		48		118		5,664
Sept. 19		Purchases		56		119		6,664
Sept. 26		Purchases		23		120		2,760
		Totals		140				$16,583

(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		$Enter a dollar amount		$Enter a dollar amount

Answer 1

1)

Under FIFO method goods purchased first are sold first.

Therefore the ending inventory will be from purchase made in last.

Ending inventory = beginning inventory + purchase - Sales

= 140 - 104

= 36 units

This will from 23 units from purchase made on 26th and 13 units from 19th.

Ending inventory

= 23*120 + 13*119

= 2,760 + 1,547

=$4,307

2)

Under LIFO method goods purchased last are sold first.

Therefore inventory will be from the beginning inventory and opening purchase.

Ending inventory will be from Opening inventory 13 units and 23 units from purchase made on Sept 12

= 13*115 + 23*118

= 1,495 + 2,714

= $4,209

3)

Average cost per unit = Total cost / Total units

= 16,583/140

= $118.45

Ending inventory

= 36*118.45

= $4,264

If you find the answer helpful please upvote.