Sunburst sells a snowboard, Xpert, that is popular with snowboard enthusiasts. B

Question

Sunburst sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Below is information relating to Sunburst%u2019s purchases of Xpert snowboards during September. During the same month, 116 Xpert snowboards were sold.

Additional data regarding the company%u2019s sales of Xpert snowboards are provided below. Assume that Sunburst uses a perpetual inventory system.

Calculate the average unit cost. (Round answers to 3 decimal places, e.g. 5.125.)

Date Explanation Units Unit Cost Total Cost Sept. 1 Inventory 12 $100 $1,200 Sept. 12 Purchases 45 103 4,635 Sept. 19 Purchases 20 104 2,080 Sept. 26 Purchases 50 105 5,250 Totals 127 $13,165

Explanation / Answer

I have used a different set of data than yours.Follow the steps in here and do the same for your data.Plz rate if it helps :)

Date Explanation Units Unit Cost Total Cost
Sept. 1 Inventory 14 $97 $1,358
Sept. 12 Purchases 45 102 4,590
Sept. 19 Purchases 20 104 2,080
Sept. 26 Purchases 50 123 6,150
Totals 129 $14,178

If you had 129 units and you sold 118 units, you had 11 units in ending inventory

(a) Compute the ending inventory at September 30 using the FIFO and LIFO methods
FIFO
Under FIFO, the oldest units are sold off first, so the 11 ending units would be valued at 11 x $123 = $1,353
COGS would be as follows:
Sept. 1 $1,358 (all sold)
Sept. 12 $4,590 (all sold)
Sept. 19 $2,080 (all sold)
Sept. 26 $4,797 (39 units sold x $123)
Total COGS $12,825

LIFO
Under LIFO, the newest units are sold off first, so the ending 11 units would be valued at 11 x $97 = $1,067
COGS would be as follows:
Sept. 1 $291 (3 units sold x $97)
Sept. 12 $4,590 (all sold)
Sept. 19 $2,080 (all sold)
Sept. 26 $6,150 (all sold)
Total COGS $13,111

(b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold.
FIFO
sum of ending inventory and cost of goods sold = $1,353 + $12,825 = $14,178

LIFO
sum of ending inventory and cost of goods sold = $1,067 + $13,111 = $14,178

They're trying to tell you that the sum of ending inventory and cost of goods sold will always be the total cost of units available for sale

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