Blossom Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Blossom Company’s purchases of EZslide snowboards during September. During the same month, 104 EZslide snowboards were sold. Blossom Company uses a periodic inventory system.Date Explanation Units Unit Cost Total CostSept. 1 Inventory 13 $104 $ 1,352Sept. 12 Purchases 46 107 4,922Sept. 19 Purchases 50 108 5,400Sept. 26 Purchases 20 109 2,180 Totals 129 $13,854(a) Compute the ending inventory at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COSTThe ending inventory at September 30 $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places (b) Compute the cost of goods sold at September 30 using the FIFO, LIFO and average-cost methods. (Round average cost per unit to 3 decimal places, e.g. 125.153 and final answers to 0 decimal places, e.g. 125.) FIFO LIFO AVERAGE-COSTCost of goods sold $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places **Blossom Company Inventory Analysis**Blossom Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Blossom Company's purchases of EZslide snowboards during September. During the same month, 104 EZslide snowboards were sold. Blossom Company uses a periodic inventory system.**Inventory and Purchases Overview:**| Date | Explanation | Units | Unit Cost | Total Cost ||------------|-------------|-------|-----------|------------|| Sept. 1 | Inventory | 13 | $104 | $1,352 || Sept. 12 | Purchases | 46 | $107 | $4,922 || Sept. 19 | Purchases | 50 | $108 | $5,400 || Sept. 26 | Purchases | 20 | $109 | $2,180 || **Totals** | | **129** | | **$13,854**|**Instruction:**- Calculate the ending inventory at September 30 using the FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and average-cost methods.- Note: Round the average cost per unit to three decimal places and final answers to zero decimal places (e.g., 125.153 and 125).**Ending Inventory Calculation**- **FIFO**: $2,720- **LIFO**: $2,636- **Average-Cost**: $2,675This analysis helps in determining the cost of inventory at the end of the period using different methods, which can impact financial statements and tax liability. ### Inventory Valuation and Cost of Goods Sold: FIFO, LIFO, and Average-Cost Methods#### Question OverviewThis exercise involves computing the ending inventory and the cost of goods sold (COGS) as of September 30 using three different inventory valuation methods: FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and the Average-Cost method. This calculation is crucial for businesses to accurately report inventory values and cost of goods sold in their financial statements.#### (a) Ending Inventory at September 30- **Objective**: Compute the ending inventory using FIFO, LIFO, and average-cost methods.- **Instructions**: Round the average cost per unit to three decimal places and the final answers to zero decimal places (e.g., 125).##### Calculated Values:- **FIFO**: \$2,720- **LIFO**: \$2,636- **Average-Cost**: \[\_\_\_\_] (\$2,675 has been marked for correction)#### (b) Cost of Goods Sold at September 30- **Objective**: Compute the cost of goods sold using the FIFO, LIFO, and average-cost methods.- **Instructions**: Round the average cost per unit to three decimal places and the final answers to zero decimal places (e.g., 125).##### Calculated Values:- **FIFO**: \$11,134- **LIFO**: \$11,218- **Average-Cost**: \[\_\_\_\_] (\$11,179 has been marked for correction)This exercise is intended to help students understand the implications and differences between each inventory valuation method, which affect financial reporting and analysis.#### Attempts and Submission- **Attempts Used**: 2 of 5- **Actions**: Use the provided inputs to verify calculations and submit your answer.### Additional Resources- **eTextbook and Media**: Access supplementary materials for further learning on inventory valuation methods.Students are encouraged to review each method's principles to ensure proper calculation and understand how each affects the financial position of a business.

solution : the company follows periodic inventory system hence the concept of perpetual shall not be…

Answered: Blossom Company sells a snowboard,…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

		FIFO		LIFO		AVERAGE-COST
The ending inventory at September 30		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places