Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Samuelson and Messenger (SAM) began 2021 with 250 units of its one product. These units were purchased near the end of 2020 for $20 each.

Samuelson and Messenger (SAM) began 2021 with 250 units of its one product. These units were purchased near the end of 2020 for $20 each. During the month of January, 125 units were purchased on January 8 for $23 each and another 250 units were purchased on January 19 for $25 each. Sales of 200 units and 150 units were made on January 10 and January 25, respectively. There were 275 units on hand at the end of the month. SAM uses a periodic inventory system.

Required:
1. Calculate ending inventory and cost of goods sold for January using FIFO.

Required 1 Required 2 Calculate ending inventory and cost of goods sold for January using average cost. (Round cost per unit2. Calculate ending inventory and cost of goods sold for January using average cost.

Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $682,000 (31,000 units at $22 ea

Required 1 Required 2 Calculate ending inventory and cost of goods sold for January using average cost. (Round cost per unit to 2 decimal places.) Cost of Goods Available for Sale Cost of Goods Sold - Average Cost Average Cost per Average Cost Unit Cost # of units # of units sold Ending Inventory - Average Cost # of units Average in ending Cost per inventory unit Cost of Goods Sold Ending Inventory Unit Beginning Inventory 250 $20.00 Purchases: January 8 125 $ 23.00 January 19 250 $25.00 625 $ 0 Required 2 > Total Cost of Goods Available for Sale $ $ 5,000 2,875 6,250 14,125 < Required 1 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Q 1 Calculate ending inventory and cost of goods sold for January using FIFO Solution Calculation of Ending Inventory and Cost of Goods Sold for Janua... 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

Step: 3

blur-text-image

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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

10th edition

1260481956, 1260310175, 978-1260481952

More Books

Students also viewed these Accounting questions