Question
Samuelson and Messenger (SAM) began 2021 with 380 units of its one product. These units were purchased near the end of 2020 for $24 each.
Samuelson and Messenger (SAM) began 2021 with 380 units of its one product. These units were purchased near the end of 2020 for $24 each. During the month of January, 190 units were purchased on January 8 for $27 each and another 380 units were purchased on January 19 for $29 each. Sales of 185 units and 290 units were made on January 10 and January 25, respectively. There were 475 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. 2. Calculate ending inventory and cost of goods sold for January using average cost.
Required 1 Required 2 Complete the below table to calculate ending inventory and cost of goods sold for January using FIFO. Cost of Goods Available for Sale Cost of Goods Sold - January 10 Cost of Goods Sold - January 25 Inventory Balance Perpetual FIFO Cost per Cost per # of units Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units sold Cost of Goods Sold # of units in ending inventory Cost per unit unit unit Ending Inventory Beg. Inventory 200 $ 25.00 $ 5,000 $ 25.00 $ 0 $ 25.00 S 0 $ 25.00 $ Purchases: 100 2,800 0 0 28.00 0 January 8 January 19 Total 28.00 30.00 28.00 30.00 28.00 30.00 200 6,000 0 0 30.00 0 500 $ 13,800 0 $ 0 0 $ 0 0 $ 0 Required 1 Required 2 Complete the below table to calculate ending inventory and cost of goods sold for January using average cost. (Round cost per unit to 2 decimal places. Enter inventory reductions from sales as negative numbers.) Inventory on hand Cost of Goods Sold Perpetual Average # of units Cost per unit Inventory Value # of units sold Avg. Cost per unit Cost of Goods Sold $ 0 0 0 0 0 Beginning Inventory Purchase - January 8 Subtotal Average Cost Sale - January 10 Subtotal Average Cost Purchase - January 19 Subtotal Average Cost Sale - January 25 Total 0 0 0 0 0 $ 0 0 $ 0
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