Inventory Costing Project - FIFO Intermediate Accounting I Fall 2022 Page 1 of 1 REW Works has hired you to manage the cost of its inventory. It sells 2 types of specialty slow cookers. It sells the Speedy slow cooker for $120 and the Slow slow cooker for $60. All sales are for cash EXCEPT where noted. It uses a perpetual inventory system and its inventory is valued using FIFO. Assume that units sold during the week includes units that were received during the week. Requirements: 1. Based on the transactions below, determine the cost that should be charged to the Cost Of Goods Sold (COGS) account for each week of sales (10/14, 10/21 and 10/28). Please show you calculations. 2. Based on the transactions below, calculate the amount that is paid to Wonder Cook and Simple Cooks for each individual payment. Please list the dates of the of the payments. 3. Calculate the cost of the ending inventory and the Accounts Payable balance as of October 31. Oct-03 REW orders 50 Speedy slow cookers from Wonder Cook. The cost is $60.00 per cooker for a total cost of $3,000. Wonder's terms are 2/10, net/30, FOB shipping point. Oct-03 REW orders 50 Slow slow cookers from Simple Cooks. The cost is $25.00 per cooker for a total cost of $1,250. Simple's terms are 1/10, net/30, FOB destination. Oct-05 REW receives 50 Speedy slow cookers from Wonder Cook. The invoice is for the 50 cookers received totaling $3,000. Oct-05 The responsible party receives and pays the $100 shipping invoice from Wee Ship Shippers for the 50 Speedy slow cookers Oct-06 REW receives the 50 Slow slow cookers from Simple Cooks. The Invoice is for $1,250. Oct-06 The responsible party receives and pays the $100 shipping invoice from Wee Ship Shippers for the 50 Slow slow cookers Oct-14 During the week, REW sells 40 Speedy slow cookers and 30 Slow slow cookers for cash. Oct-14 REW pays the amount outstanding to Wonder Cook. Oct-14 REW orders 50 Speedy slow cookers from Wonder Cook. The cost is now $55.00 per cooker for a total cost of $2,750. Wonder's terms are 2/10, net/30, FOB shipping point. Oct-14 REW orders 30 Slow slow cookers from Simple Cooks. The cost is $30.00 per cooker for a total cost of $900. Simple's terms are 1/10, net/30, FOB destination. Oct-17 Customers return 2 Slow slow cookers because they cooked too slow. They are given a cash refund and the 2 Slow slow cookers are sent back to Simple Cooks. Oct-17 REW pays her daughter for 40 hours of work (Oct 10 - 14). Oct-17 REW pays the amount outstanding to Simple Cooks. Oct-19 REW receives the 50 Speedy slow cookers from Wonder Cook and the invoice for $2,750. Oct-19 The responsible party receives and pays the $100 shipping invoice from Wee Ship Shippers for the 50 Speedy slow cookers Oct-20 REW receives the 30 Slow slow cookers from Simple Cooks. The Invoice is for $900. Oct-20 The responsible party receives and pays the $60 shipping invoice from Wee Ship Shippers for the 30 Slow slow cookers Oct-21 During the week, REW sells 40 Speedy slow cookers and 40 Slow slow cookers for cash. Oct-21 REW found 5 defective Speedy slow cookers before they were sold and returned them to Wonder Cook. Oct-21 REW orders 25 Speedy slow cookers from Wonder Cook. The cost is now $65 per cooker for a total cost of $1,625. Wonder's terms are 2/10, net/30, FOB shipping point. Oct-21 REW orders 22 Slow slow cookers from Simple Cooks. The cost is $35.00 per cooker for a total cost of $770. Simple's terms are 1/10, net/30, FOB destination. Oct-24 REW pays the amount outstanding to Wonder Cook. Oct-25 REW receives the 25 Speedy slow cookers from Wonder Cook and the invoice for $1,625. Oct-25 The responsible party receives and pays the $50 shipping invoice from Wee Ship Shippers for the 25 Speedy slow cookers Oct-26 REW receives the 22 Slow slow cookers from Simple Cooks. The Invoice is for $770. Oct-26 The responsible party receives and pays the $44 shipping invoice from Wee Ship Shippers for the 22 Slow slow cookers Oct-28 During the week, REW sells 40 Speedy slow cookers and 30 Slow slow cookers for cash. Oct-28 REW orders 40 Speedy slow cookers from Wonder Cook. The cost is $60.00 per cooker for a total cost of $2,400. Wonder's terms are 2/10, net/30, FOB shipping point. Oct-28 REW orders 30 Slow slow cookers from Simple Cooks. The cost is $32.00 per cooker for a total cost of $3,200. Simple's terms are 1/10, net/30, FOB destination. Oct-31 REW pays the amount outstanding to Wonder Cook. Answers to Requirements: Requirement 1: Cost of Goods Sold 10/14 Cost of Goods Sold 10/21 Cost of Goods Sold 10/28 Requirement 2: Payment to Wonder Cooks 10/14 Payment to Simple Cooks 10/17 Payment to Wonder Cooks 10/24 Payment to Wonder Cooks 10/31 Requirement 3: Ending Inventory 10/31 Accounts Payable 10/31