Exercise 6-4.docx - Exercise 6-4 Linda\u2019s Boards sells a snowboard Xpert that is popular with snowboard enthusiasts Information relating to Linda\u2019s

Exercise 6-4.docx - Exercise 6-4 Lindau2019s Boards sells...

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Exercise 6-4Linda’s Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Linda’s purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Linda’s uses a periodic inventory system. Exercise 6-4Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods. 26\$97\$2,5229/12451024,5909/19201042,0809/26301053,150121\$12,3422,1001,94012,34212,502
LIFOCost of goods available for sale\$14,442Less: Ending inventory (20 x \$97)1,940Cost of goods sold\$12,502ProofDateUnitsUnit CostTotal Cost9/2650\$105\$5,2509/19201042,0809/12451024,5909/1697582121\$12,502 Exercise 6-4For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold. FIFOLIFOThe sum of ending inventory and cost of goods sold\$\$SOLUTIONFIFO :\$2,100 (ending inventory) + \$12,342 (COGS) = \$14,44}Cost of goods available for saleLIFO :\$1,940 (ending inventory) + \$12,502 (COGS) = \$14,442Under both methods, the sum of the ending inventory and cost of goods sold equals the same amount, \$14,442, which is the cost of goods available for sale.14,44214,442 2