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Salt and Mineral (SAM) began 2024 with 250 units of its one product. These units were purchased near the end of 2023 for $24 each.
Salt and Mineral (SAM) began 2024 with 250 units of its one product. These units were purchased near the end of 2023 for $24 each. During the month of January, 125 units were purchased on January 8 for $27 each and another 250 units were purchased on January 19 for $29 each. Sales of 170 units and 130 units were made on January 10 and January 25, respectively. There were 325 units on hand at the end of the month. SAM uses a periodic inventory system.
Required:
- Calculate ending inventory and cost of goods sold for January using FIFO.
- Calculate ending inventory and cost of goods sold for January using average cost.
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