Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Samuelson and Messenger (SAM) began 2021 with 400 units of its one product. These units were purchased near the end of 2020 for $25 each.
Samuelson and Messenger (SAM) began 2021 with 400 units of its one product. These units were purchased near the end of 2020 for $25 each. During the month of January, 200 units were purchased on January 8 for $28 each and another 400 units were purchased on January 19 for $30 each. Sales of 150 units and 300 units were made on January 10 and January 25, respectively. There were 550 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate ending inventory and cost of goods sold for January using FIFO. Cost of Goods Available for Sale FIFO Cost per # of units Cost of Goods Available for Sale Cost of Goods Sold - Periodic FIFO Cost of Cost per # of units Goods sold unit Sold 400 25.00 $ 10,000 Ending Inventory - Periodic FIFO # of units Cost per in ending Ending unit Inventory inventory $ 25.00 $ 0 unit 400 $ 25.00 $ 10,000 Beginning Inventory Purchases: January 8 January 19 Total 0 0 200 400 1,000 28.00 30.00 5,600 12,000 27,600 28.00 30.00 28.00 30.00 400 0 $ 10,000 12,000 12,000 $ 400 400 $ Samuelson and Messenger (SAM) began 2021 with 400 units of its one product. These units were purchased near the end of 2020 for $25 each. During the month of January, 200 units were purchased on January 8 for $28 each and another 400 units were purchased on January 19 for $30 each. Sales of 150 units and 300 units were made on January 10 and January 25, respectively. There were 550 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. Complete this question by entering your answers in the tabs below. 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 Average Cost Unit Cost Cost of Goods Sold - Average Cost Average # of units Cost of Cost per sold Unit Cost of Goods Available for Sale # of units Ending Inventory - Average Cost # of units Average Ending Cost per inventory unit Inventory Goods Sold in ending 400 $ 25.00 $ 10,000 Beginning Inventory Purchases: January 8 January 19 Total 200 $28.00 400 $ 30.00 1,000 5,600 12,000 27,600 $ $ 0 550 $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started