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REI sells snowboards, Assume the following information relates to REI's purchases of snowboards during September. During the same month, 108 snowboards were sold. REl uses a periodic inventory system. (a) Compute the ending inventory at September 30 using FiFO, LIFO, and average-cost. (Round average cost per unit to 3 decimal places: e. G. 125. 153 and final answers to 0 decimal ploces, es. 125. )
REI sells snowboards, Assume the following information relates to REI's purchases of snowboards during September. During the same month, 108 snowboards were sold. REl uses a periodic inventory system. (a) Compute the ending inventory at September 30 using FiFO, LIFO, and average-cost. (Round average cost per unit to 3 decimal places: e. G. 125. 153 and final answers to 0 decimal ploces, es. 125. )
To compute ending inventory under FIFO, we consider the newest purchases first, resulting in $3,674. For LIFO, we consider the oldest purchases first, totaling $3,601. Using the average-cost method, the ending inventory is calculated at $3,632.To compute the ending inventory at September 30 using FIFO, LIFO, and average-cost methods, we first need to understand how many snowboards were available at the beginning of the month and the total units purchased during the month.FIFO (First-In, First-Out) assumes that the oldest items are sold first. Therefore, the ending inventory consists of the newest items:26 snowboards at $115 each (from Sept. 26)6 snowboards at $114 each (from Sept. 19)Ending Inventory = (26 * $115) + (6 * $114) = $2,990 + $684 = $3,674LIFO (Last-In, First-Out) assumes that the newest items are sold first. Thus, the ending inventory consists of the oldest items:5 snowboards at $110 each (from Sept. 1)27 snowboards at $113 each (from Sept. 12)Ending Inventory = (5 * $110) + (27 * $113) = $550 + $3,051 = $3,601The average-cost method calculates the cost of ending inventory based on the average cost of all units available for sale. The total cost of inventory available is $15,890, and 140 snowboards were available for sale, so:Average Cost per Unit = $15,890 / 140 = $113.500 per unitEnding Inventory= 32 snowboards * $113.500 = $3,632 (Rounded to nearest dollar)Please note that while calculating the average cost, we rounded the average cost per unit to three decimal places as requested, but rounded final average cost inventory to whole dollars.The probable question may be:REI sells snowboards, Assume the following information relates to REI's purchases of snowboards during September. During the same month, 108 snowboards were sold. REl uses a periodic inventory system.Date: Sept. 1, Sept. 12, Sept. 19, Sept. 26Explanation: Inventory, Purchases, Purchases, PurchasesUnits: 10 53, 54, 23Totals: 140Unit Cost: $110, 113, 114, 115Total Cost: $1,100, 5,989, 6,156, 2,645Totals: $15,890(a) Compute the ending inventory at September 30 using FiFO, LIFO, and average-cost....