Required information In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole's Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventory using a perpetual inventory system. On December 31, NGS purchased 10 units at a total cost of $7.20 per unit. Nicole purchased 25 more units at $8.80 in February. In March, Nicole purchased 10 units at $10.80 per unit. In May. 40 units were purchased at $10.60 per unit. In June, NGS sold 40 units at a selling price of $12.80 per unit and 30 units at $10.80 per unit. 2. Compute the cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIF method. (Round "Cost per Unit" to 2 decimal places.) Answer is complete but not entirely correct. FIFO (Perpetual Units Cost per Total Unit $ 7.20 S 72 10 Beginning Inventory Purchases method. (Round "Cost per Unit" to 2 decimal places.) Answer is complete but not entirely correct. FIFO (Perpetual Units Total Cost per Unit $ 720 10 $ 72 Beginning Inventory Purchases February March May Net Purchases Goods Available for Sale 25 $ 8.80 10 V s 10.99 40 $ 10.60 @ 75 85 @ 752 824 Cost of Goods Sold Units from Beginning Inventory Units from February Purchase Units from March Purchase Units from May Purchase Total Cost of Goods Sold Ending Inventory 10 $ 7.20 25 $ 8.80 10 $ 10.80 G 308 $ 10.60 718 75 10 8 106 X Required information In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole's Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventory using a perpetual inventory system. On December 31, NGS purchased 10 units at a total cost of $7.20 per unit. Nicole purchased 25 more units at $8.80 in February. In March, Nicole purchased 10 units at $10.80 per unit. In May, 40 units were purchased at $10.60 per unit. In June. NGS sold 40 units at a selling price of $12.80 per unit and 30 units at $10.80 per unit. Calculate the inventory turnover ratio, using the inventory purchased on December 31 as the beginning inventory (Round your answers to 2 decimal places.) Inventory Turnover Ratio Numerator Denominator
