Powder, Inc. sells an Xpert snowboard that is popular with snowboards enthusiast
ID: 2412431 • Letter: P
Question
Powder, Inc. sells an Xpert snowboard that is popular with snowboards enthusiasts. The following information shows Powder’s purchases and sales of Xpert snowboards during November:
Determine the cost of goods sold and ending inventory using (1) FIFO and (2) average cost, assuming Powder uses a perpetual inventory system. (Round answers to 0 decimal places, e.g. 5,275.)
Unit Units Cost Unit Sales Price Date Transaction November 1 Beginning inventory 5 Purchases 12 Sales 19 Purchases 22 Sales 25 Purchases 34 $298 21 308 (39) 40 306 (50) 33 313 39 $471 486Explanation / Answer
FIFO Date Particulars Units Cost Amount COGS 1-Nov Op Bal 34.00 298.00 10,132.00 5-Nov Purchases 21.00 308.00 6,468.00 Total 55.00 16,600.00 12-Nov COGS 39.00 11,672.00 34*298+5*308 Total 16.00 4,928.00 19-Nov Purchases 40.00 306.00 12,240.00 Total 56.00 17,168.00 22-Nov Sales 50.00 15,332.00 16*308+34*306 Total 6.00 1,836.00 25-Nov Purchases 33.00 313.00 10,329.00 Total 39.00 12,165.00 COGS 27,004.00 Ending Inventory 12,165.00 Average Cost Date Particulars Units Cost Amount COGS 1-Nov Op Bal 34.00 298.00 10,132.00 5-Nov Purchases 21.00 308.00 6,468.00 Total 55.00 301.82 16,600.00 12-Nov COGS 39.00 301.82 11,770.91 Total 16.00 301.82 4,829.09 19-Nov Purchases 40.00 306.00 12,240.00 Total 56.00 304.81 17,069.09 22-Nov Sales 50.00 304.81 15,240.26 Total 6.00 304.81 1,828.83 25-Nov Purchases 33.00 313.00 10,329.00 Total 39.00 311.74 12,157.83 COGS 27,011.17 Ending Inventory 12,157.83
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