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On September 1, 2010, the inventory of Cruisers, Inc., consisted of five Model OB3 boats. Each boat had cost $1,500. During the year ended August 31, 2011, 40 boats were purchased on the dates and at the costs that follow. During the year, 37 boats were sold.
Number
Cost per
Total
Date of Purchase
of Boats
Boat
Cost
September 1, 2010 (beginning inventory)
5
$1,500
$ 7,500
November 7, 2010
8
1,600
12,800
March 12, 2011
12
1,650
19,800
May 22, 2011
10
1,680
16,800
July 28, 2011
6
1,700
10,200
August 30, 2011
4
1,720
6,880
Total of boats available for sale.
45
$73,980
Number of boats sold.
37
Number of boats in August 31, 2011 inventory
Required:
Determine the ending inventory amount at August 31, 2011, and the cost of goods sold for the year then ended, using the weighted-average, FIFO, and LIFO cost-flow assumptions.
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