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Only need help with the average cost method. Already did the FIFO one. Samuelson and Messenger (S&M) began 2018 with 200 units of its one
Only need help with the average cost method. Already did the FIFO one.
Samuelson and Messenger (S&M) began 2018 with 200 units of its one product. These units were purchased near the end of 2017 for $20 each. During the month of January, 100 units were purchased on January 8 for $23 each and another 200 units were purchased on January 19 for $25 each. Sales of 130 units and 110 units were made on January 10 and January 25, respectively. There were 260 units on hand at the end of the month. S&M uses a periodic inventory system. Required: 1. Calculate ending inventory and cost of goods sold for January using FIFO. 2. Calculate ending inventory and cost of goods sold for January using average cost. Required 1 Required 2 Calculate ending inventory and cost of goods sold for January using average cost. (Round average cost per unit to 2 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Ending Inventory - Average Cost Average Cost Unit Cost of Goods Average Average # of units # of units Cost of # of units Available for Cost per in ending Ending Cost per Cost Sale sold Unit Goods Sold inventory unit Inventory Beginning Inventory 200 $ 20.00 $ 4,000 Purchases: January 8 100 $ 23.00 2,300 January 19 200 $25.00 5,000 Total 500 $ 22.60 11,300 EA $ 0 $ $ 0Step by Step Solution
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