Zhu Boards sells a snowboard- Xpert.
The following information rel
September, 50 Xpert snowboards were sold on Sept 15 and 71 Xpert
September 30 and COGS using the
Date Explain Units Units cost
Sep-01 Inventory 23970
Sep-12 Purchase 451,020
Sep-14 Purchase 201,040
Sep-26 Purchase 441,050
132
Begining inventory + purchase = Cost of goods available for
Periodic inventory system
+ record inventory increase when purchase
+ not record for inventory reduce (=COGS) when sale
-> need to determine ending inventory
Step 1: Ending inventory
Step 2: COGS for the period
FIFO under periodic system
Step 1: Ending inventory is the latest unit purchase
11 units x 1,050 = 11550
Step 2: COGS for the period
Cost of goods available for sale - Ending inventory = 135,210 - 11,550=
Weighted average-cost under periodic system
Weighted avereage cost per unit = Cost of goods available for sale/ Un
Step 1: Ending inventory
11 units x Weighted avereage cost per unit 1024.32 =
Step 2: COGS for the period
Cost of goods available for sale - Ending inventory = 135,210 - 11,267.
Perpetual inventory system
+ record inventory increase when purchase
+ record for inventory reduce (=COGS) when sale
Ending inventory = Cost of goods available for sale - COGS
Step 1: COGS
Step 2: Ending inventory at the end of the period
FIFO under perpetual system
Date Explain Units Units cost Total cost
Sep-01 Inventory 23970 22,310
Sep-12 Purchase 451,020 45,900
Sep-14 Purchase 201,040 20,800
Sep-15 Sale (COGS) 23970 22,310
271,020 27,540
Sep-26 Purchase 441,050 46,200
Sales
Sep-28 (COGS) 18 1020 18,360
20 104020,800
33 105034,650
Moving average cost under perpetual system
Date Explain Units Units cost Total cost
Sep-01 Inventory 23970 22,310
Sep-12 Purchase 451,020 45,900
Sep-14 Purchase 201,040 20,800
Sep-15 Sale 501,011.48 50,573.86
Sep-26 Purchase 441,050 46,200
Sep-28Sales 71 1,032.15 73,282.51
P6.5
P6.8*
nformation relates to Zhu’s purchases of Xpert snowboards during Septembe
5 and 71 Xpert snowboards were sold on Sept 28. Compute the ending inven
COGS using the FIFO and average- cost methods.
Total
cost Sale date unit
22,310 Sep-15 50
45,900 Sep-28 71
20,800 Total 121
46,200
135,210
s available for sale = 135,210
5,210 - 11,550= 123,660
ble for sale/ Units available for sale = 135,210/132 =
11267.50
5,210 - 11,267.5= 123,942.5
Current balance
Units Units cost Total cost Step 1: COGS
23 970 22,310 COSG at sept 15
23 970 22,310 COGS at Sept 28
45 1020 45,900 Total COGS
23 970 22,310 Step 2: Ending inve
45 1020 45,900 Ending inventory =
20 1040 20,800 =135,210 - 123,660
18 1020 18,360
20 1040 20,800
18 1020 18,360
20 1040 20,800
44 1050 46,200
11 1050 11,550
Current balance
Units Units cost Total cost Step 1: COGS
23 970 22,310 COSG at sept 15
68 1,003.09 68,210 COGS at Sept 28
88 1,011.48 89,010 Total COGS
38 1,011.48 38,436.14 Step 2: Ending inve
82 1,032.15 84,636 Ending inventory =
11 1,032.15 11,353.63 =135,210 - 123,856
s during September. In
the ending inventory at
Unit in ending inventory = 132-121=11 units
1024.32
tep 1: COGS
OSG at sept 15 49,850
OGS at Sept 28 73,810
otal COGS 123,660
tep 2: Ending inventory at the end of the period
nding inventory = Cost of goods available for sale - COGS
135,210 - 123,660 = 11,550
tep 1: COGS
OSG at sept 15 50,573.86
OGS at Sept 28 73,282.51
otal COGS 123,856.37
tep 2: Ending inventory at the end of the period
nding inventory = Cost of goods available for sale - COGS
135,210 - 123,856.37 = 11,353.63
