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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$12,502Exercise 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.14,44214,4422