Boarders sells a snowboard Xpert, that is popular with snowboard enthusiasts. Below is information relating to Boarder's purchases of Xpert snowboards during September. During the same month, 121 Xpert snowboards were sold. Boarders uses a periodic inventory system.

Date Explanation Units
Units Cost Total Cost

Sept 1 Inventory 26 $ 100 $2,600
Sept 12 Purchases 45 103 4,635
Sept 19 Purchases 20 108 2,160
Sept 26 Purchases 50 111 5,550

Totals 141 $14,945





Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods.

FIFO LIFO
Ending Inventory $ $
Cost of goods sold $ $









For both FIFO and LIFO, compute the sum of cost of goods sold and ending inventory. What do you notice about the result for each method.
the sum is greater for FIFO

the sums for FIFO and LIFO are equal

the sum is greater for LIFO

I take it that you do not work for any of the Big-Four.

LOL Are you asking us to do your homework for? This is one of the funniest threads I've ever seen on Fairfax Underground.

FIFO = First In First Out
LIFO = Last In First Out

Think about it.

141 - 121 = 20 units ending inventory.

FIFO Cost of Goods Sold would be (26*100)+(45*103)+(20*108)+(30*111)
FIFO Ending Inventory (20*111)
LIFO Cost Of Goods Sold would be (6*100)+(45*103)+(20*108)+(50*111)
LIFO Ending Inventory (20*100)

In a period of rising prices, LIFO overstates Cost Of Goods Sold and understates Ending Inventory. This leads to a corresponding decrease in gross profit which is why the IRS wants everyone to use FIFO.

Of course, both methods are bullshit. Most companies have moved to a weighted average price methodology for inventory. I haven't seen FIFO or LIFO used in years (expect perhaps in Detroit).

I'm interested. Point out some FASB studies so I can get into this topic further.

Mr. P

zhangmeng55 Wrote:
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> p
> andora jewelry

As soon as you saw we were discussing $100 snowboards, I guess you figured this was just the place to hawk cheap Chinese shit, am I right?

Well, you're fucked. There are two types of posters here:
Normal Novans, who only purchase the best.
The occasional trumptard, who hates China, and doesn't have any money anyhow.

I am utterly convinced that accounting is very popular now and this is very useful for every starting company. For me, it was important to get business registration help in Hong Kong. I was a newbie at it and I didn't know how everything should be done and I just did what I was said to do.

"did what I was said to do"

What does being a shill for a fly by night organization pay these days?

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