Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

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 $ $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: V.K. Gopal

1st Edition

9788174467461

More Books

Students also viewed these Accounting questions

Question

Define Administration and Management

Answered: 1 week ago

Question

Define organisational structure

Answered: 1 week ago

Question

Define line and staff authority

Answered: 1 week ago

Question

Identify five strategies to prevent workplace bullying.

Answered: 1 week ago