Exercise 1

Sherper’s Boards sells a snowboard that is popular with snowboard enthusiasts. Information relating to
Sherper’s purchases of Xpert snowboards during September is shown below. During the same month, 121
Xpert snowboards were sold. Sherper’s uses a periodic inventory system.
Date Explanation Units Unit Cost Total Cost
Sept. 1 Inventory 23 $ 970 $ 22,310
Sept. 12 Purchases 45 1,020 45,900
Sept. 19 Purchases 20 1,040 20,800
Sept. 26 Purchases 44 1,050 46,200
Required compute ending inventory and cost of goods sold using FIFO, LIFO and Weighted average.

Exercise 2

Zambian Co. uses a periodic inventory system. Its records show the following for the month of May, in which
68 units were sold.
Date Explanation Units Unit Cost Total Cost
May 1 Inventory 30 $9 $270
15 Purchases 25 11 275
24 Purchases 35 12 420
Instructions compute the ending inventory at May 31 and cost of goods sold using the FIFO and

average cost methods.

Exercise 3

You are provided with the following information for Senta Inc. for the month ended October 31, 2021. Senta

uses a perpetual method for inventory.

Date Description Units Unit Cost

October 1 Beginning inventory 60 €24

October 9 Purchase 120 26

October 11 Sale 100

October 17 Purchase 70 27

October 22 Sale 65

October 25 Purchase 80 28

October 29 Sale 120

1
Instructions (a) Calculate (i) Ending inventory, (ii) Cost of goods sold Using FIFO, LIFO and Weighted

average.

Exercise 4

Tempo Ltd. is a retailer operating in Dartmouth, Nova Scotia. Tempo uses the perpetual inventory method.
You are provided with the following information for Tempo Ltd. for the month of January 2022.
Date Description Units Unit Cost
January 1 Beginning inventory 150 $19
January 2 Purchase 100 21
January 6 Sale 150
January 9 Purchase 75 24
January 10 Sale 50
January 23 Purchase 100 26
January 30 Sale 160

Instructions (a) Calculate (i) Ending inventory, (ii) Cost of goods sold Using FIFO, LIFO and Weighted

average.